Remaining principal balance


Also found in: Acronyms.

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 ?
In other words, in the early life of a mortgage instead of the larger portion of the monthly payment going to pay interest on the remaining principal balance, devote it to the reduction of principal and vice versa.
the property is now worth $490,000) and the remaining principal balances on the family's mortgages are $545,200 and $60,100, respectively.
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.