One difference between the constant amortizing mortgage (CAM)and the constant payment mortgage (CPM)is the interest paid and loan amortization relationship.With a CAM,the loan amortization and interest paid are directly related and with the CPM the loan amortization and the interest paid are inversely related.

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In a CAM, as the principal amount decreases, both the interest payment and the amortization amount decrease over time, maintaining a direct relationship. In a CPM, as more of the loan gets paid off, the portion of the payment going towards interest decreases while the portion going towards principal increases, showing an inverse relationship between interest paid and loan amortization.

One Difference Between the Constant Amortizing Mortgage (CAM)and the Constant