Column F, calculated using the formula described above, and Column H, calculated using the PV function should be identical; note again that the PV function places a negative sign in front of the remaining principal balance
calculation and does not round the output.
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 borrower's balance sheet at the 1oan's maturity would show a liability for the recorded, but unpaid, interest and the 1oan's remaining principal balance
The outstanding term loans under the existing credit agreement, which had a remaining principal balance
of USD600m and was to mature on 30 March 2017, have been fully repaid with borrowings under the revolving loan, the company said.
Employers can use the updated VFC Program to correct loans that exceed applicable limits, by requiring a participant to return the excess loan amount to the plan and amortizing the remaining principal balance
as of the correction date over the remaining duration of the original loan.
After two years of seasoning, these reserve funds now represent between 35 percent and 51 percent of the remaining principal balance
of the securities, a substantially larger portion of the outstanding balance than at the time the bonds were issued.
Therefore, the remaining principal balance
of a debt amortization schedule under the rule-of-78 method would be greater than that of the unpaid principal balance method.
A typical fixed-rate residential mortgage is a combination of a series of required cash flows--each an unconditional receivable (payable)--and the privilege of prepaying the remaining principal balance
at any time--an option written (held).
Freddie Mac argues that payment of face value or the remaining principal balance
would only be necessary if the normal mechanisms of claims adjustment are either unavailable or insufficient.
However, if the borrower chooses to prepay the zero mortgage at any point prior to 30 years, the zero-coupon bond only partially satisfies the outstanding principal balance (the remaining principal balance
could come from the proceeds from the sale of the home, a new mortgage or other sources).
* quickly access basic issuer portfolio information, such as remaining principal balance
, number of loans and number of pools in the portfolio;