Payment Rate

The interest rate used to calculate the mortgage payment. The interest rate and the
payment rate are often the same, but they need not be. They must be the same if the payment is fully
amortizing. If the payment rate is higher than the interest rate, the payment will be more than fully
amortizing and, if continued, the loan will pay off before term. If the payment rate is below the
interest rate, the payment will be less than fully amortizing and, if continued, the loan will not be
fully paid off at term.