Original Principal Balance

Definition

• The amount of money borrowed from a lender.

Synonyms
initial principal balance

Related Terms and Acronyms

• Amortized Loan — Definition,
  • A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal.
• Down Payment — Definition,
  • The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
• Interest Rate (IR) — Acronym, Very Important,
  • The rate a lender charges an individual to borrow money.
• Loan — Definition,
  • Letting another party use something of value temporarily.
• Mortgage (mtg) — Abbreviation, Important,
  • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
• Principal — Definition,
  • The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
• Principal and Interest (P&I, PI) — Acronym,
  • Acronym for the elements of a mortgage payment: principal and interest.
• Remaining Balance — Definition,
  • Unpaid principal on a loan.