Scheduled loan repayment. Schedules a fixed number of fixed-amount monthly installments. Interest and principal allocation shifts from month to month. Early on, interest allocation is high. Over time, interest allocated decreases and is balanced by principal payment allocation increases. Also known as straight line amortization.
Link to This DefinitionDid you find this definition of LEVEL PAYMENT AMORTIZATION helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary