What refers to the timely payment of mortgage installments as agreed in the loan terms?

The term that refers to the timely payment of mortgage installments as agreed in the loan terms is commonly described as "prompt payment." This concept emphasizes the importance of making each payment on or before the due date to avoid late fees, penalties, or negative impacts on one’s credit score. Prompt payment is a crucial aspect of maintaining a positive borrowing relationship with a lender, as it indicates good financial discipline and reliability in fulfilling loan obligations.

While other options like "loan servicing" pertain to the overall process of managing the loan and its payments, and "regular payment" could refer to the scheduled payments made according to the loan agreement, these terms do not specifically highlight the aspect of timeliness that "prompt payment" encapsulates. The term "full payment" generally refers to paying off the entire loan amount rather than addressing the routine installment payments. Thus, "prompt payment" is the most accurate choice for this specific context.