Remaining principal balance(redirected from Remaining Principal Balances)
Remaining principal balance
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Remaining Principal Balance
The amount of the principal of a loan that a borrower has not repaid. For example, suppose a person borrows $1,000 for a year and repays an equal amount of principal every month in addition to the interest payment. After six months, the remaining principal balance is $500. It should be noted, however, that not all loans have the same amount of principal repayment every month. The remaining principal balance is particularly important in mortgages. See also: Amortization.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved