Remaining principal balance

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Remaining principal balance

The amount of principal dollars remaining to be paid under a mortgage as of a given time.

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.
References in periodicals archive ?
There might be additional burden to institutions from having to comply with two sets of federal requirements on disclosing the remaining principal balances that apply to different categories of loans.