Which characteristic does NOT describe a level payment fixed rate mortgage?

The characteristic that does not describe a level payment fixed rate mortgage is that the monthly payment toward principal slightly decreases each period. In a level payment fixed rate mortgage, the total monthly payment remains constant throughout the life of the loan. This means that while the total payment stays the same, the breakdown between principal and interest changes over time. Initially, a larger portion of the payment goes towards interest and a smaller portion goes toward paying down the principal. As the loan matures, the interest component decreases and the principal repayment increases, but the total monthly payment remains level.

Understanding this concept highlights the structure of a fixed-rate mortgage, where stability and predictability in monthly payments are key features. The other characteristics, such as the term of the loan being fixed, the interest rate remaining constant, and the expectation that the monthly interest payment gradually decreases are all accurate representations of a level payment fixed-rate mortgage.