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Handy Definitions


(Monthly payment)

The Monatsrate or monthly payment is the total monthly payment on a mortgage. It is the sum of interest and principal payments. The principal payment is also referred to as repayment and is the payment of the original loan in installments. The term Monatsrate is often used for German mortgages. For an annuity mortgage, the Monatsrate is constant, including a decreasing interest part and an increasing repayment part.

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