Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately

Level Payment

Synonyms:fixed payment, static payment
Filed Under: financial-banking, mortgages
Tags: banking, mortgage

Definition of level payment

level payment
1. The method of repayment where periodical payments of principal and interest are made in such a way that the payments remain constant in amount.

Related Terms and Acronyms:

  • fixed annuity   An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
  • fixed instalment   Periodic (usually monthly) payment on a loan whose sum does not vary.
  • fixed premium   Insurance or annuity premiums that stay level for a specific period of time.
  • fixed rate mortgage (FRM)   A loan in which the interest rate and payments remain the same for the entire life of the loan. The interest rate and payment amounts are set at the time of loan origination.
  • flat fee   A fixed charge that a broker requests instead of a commission.
  • interest only payments   A payment plan where only the interest is paid off.
  • level-premium insurance   Insurance where the premiums the policyholder pays are guaranteed to remain the same for an agreed upon period of time.
  • simple interest (SI)   Interest computed only on the principal balance, without compounding.
  • simple interest loan   A method of allocating the monthly payment between interest and principal. The interest charged is determined by the unpaid principal balance on the loan, the interest rate, and the number of days since the last payment. The rest of the payment goes to the principal. Making early payments or additional payments reduces the loan's principal and cuts the total interest paid over the life of the loan.
  • variable rate   A floating percentage value that fluctuates based on certain conditions.

More Related Terms and Acronyms

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