GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Original Principal Balance


Synonyms:initial principal balance
Filed Under: financial-banking, mortgages
Tags: banking, mortgage
 

Definition of original principal balance

original principal balance
1. The amount of money borrowed from a lender.

Related Terms and Acronyms:

  • amortized loan   A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal.
  • down payment   The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
  • interest rate (IR)   The rate a lender charges an individual to borrow money.
  • loan   Letting another party use something of value temporarily.
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • principal   The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
  • principal and interest (P&I, PI)   Acronym for the elements of a mortgage payment: principal and interest.
  • remaining balance   Unpaid principal on a loan.

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