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 thing children are taught by hearing these lullabies is respect. They are taught to respect certain things in life and certain people. By giving respect, they hope to gain self-respect and through self-respect, they gain the respect of others. Self-respect is one of the qualities my people stress and try to nurture, and one of the controls an Indian has as he grows up. Once you lose your self-respect, you just go down.”
—Henry Old Coyote (20th century)
“In a famous Middletown study of Muncie, Indiana, in 1924, mothers were asked to rank the qualities they most desire in their children. At the top of the list were conformity and strict obedience. More than fifty years later, when the Middletown survey was replicated, mothers placed autonomy and independence first. The healthiest parenting probably promotes a balance of these qualities in children.”
—Richard Louv (20th century)