Constant-Payment Loan

Loan on which equal payments are made periodically so as to pay off the debt when the last payment is made. See also Balloon Payment; Conventional Mortgage; Level-Payment Mortgage.

A loan on which equal payments are made periodically so as to pay off the debt when the last payment is made. See Level-Payment Mortgage, Variable-Payment Plan.
Example: Baker obtains a constant payment loan to purchase a home. The loan requires a payment of $1,500 per month (principal and interest) for 30 years. At the end of 30 years, the principal balance will be zero.