German Mortgage Glossary

Monthly payment

(Monatsrate)

The monatsrate or monthly payment is the total monthly payment on a mortgage. It is the sum of interest and principal payments. Principal payment is also referred to as repayment, and is the payment of the original loan in installments.  This  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.