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:
“This place is the Devil, or at least his principal residence, they call it the University, but any other appellation would have suited it much better, for study is the last pursuit of the society; the Master eats, drinks, and sleeps, the Fellows drink, dispute and pun, the employments of the undergraduates you will probably conjecture without my description.”
—George Gordon Noel Byron (1788–1824)
“You need an infinite stretch of time ahead of you to start to think, infinite energy to make the smallest decision. The world is getting denser. The immense number of useless projects is bewildering. Too many things have to be put in to balance up an uncertain scale. You can’t disappear anymore. You die in a state of total indecision.”
—Jean Baudrillard (b. 1929)