Loan Principal

Annual Mortgage Constant
An Annual Mortgage Constant is a measurement used in real estate to compare the annual debt service to the original loan principal amount. It is used to determine the efficiency of a mortgage from a borrower's perspective.
Equity Buildup
Equity Buildup refers to the gradual increase in an owner's equity in mortgaged property, primarily caused by the amortization of the loan principal.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.