Principal balance, in regard to a mortgage or other debt instrument, is the amount due and owing to satisfy the payoff of the underlying obligation.
Amortized mortgage loans automatically pay a portion of each monthly payment to the principal balance with the rest being paid as interest.
An interest-only loan does not require any monies be paid toward the principal balance each month, but is allowable.
Famous quotes containing the words principal and/or balance:
“The principal saloon was the Howlin’ Wilderness, an immense log cabin with a log fire always burning in the huge fireplace, where so many fights broke out that the common saying was, “We will have a man for breakfast tomorrow.””
—For the State of California, U.S. public relief program (1935-1943)
“... idleness is an evil. I don’t think man can maintain his balance or sanity in idleness. Human beings must work to create some coherence. You do it only through work and through love. And you can only count on work.”
—Barbara Terwilliger (b. c. 1940)