The cost method requires the dividing of the equity position by all the costs related to the purchase, repairs, and rehab of the property. Complex calculations may also be required for property bought with an adjustable-rate mortgage ARM with a variable escalating rate charged annually through the duration of the loan. Dubai’s economy is fueled by a number of industries including tourism, finance, industrial consulting and communication technologies. Advanced Search Submit entry for keyword results. How the Mortgage Constant Is Used by Lenders and Real Estate Investors A mortgage constant is the percentage of money paid each year to pay or service a debt given the total value of the loan. Historically, we have financed our cash flow and operations from the sale of common stock and issuance of notes payable. This builds up the equity in your home.