principal payment
Debt balance decrease
A principal payment is the portion of a loan payment that reduces the original amount borrowed, as opposed to interest charges.
Early in a mortgage, most of each payment goes toward interest; over time, more goes toward principal.
Making extra principal payments shortens the loan term: We put an extra $200 toward principal each month.
- amortizationGradual debt reduction schedule
- mortgageSecured home loan
- loanBorrowed money repaid later
- loan balanceDebt yet unpaid
- balanceSteadiness or amount owed
installment · equity · home equity · payoff · debt · reduction · lump · sum · borrower · interest · interest rate · outstanding · outstanding balance · chunk · dent · owed · monthly · schedule
principal paymentinterest payment
Fee for borrowed funds
finance charge · loan interest · service charge · accrued interest
principal, payment, principally, principality, prince, princely, princess, pay, paying