PrincipalThe initial amount of a loan, thus not including interest.
PrincipalThe sum of money outstanding upon which interest is payable. Also refers to one who is served by an agent. Private Mortgage Insurance (PMI): Insurance written by a private mortgage insurance company protecting the mortgage lender against loss occasioned by a mortgage default and foreclosure.
PrincipalThe amount of money that the borrower owes on a mortgage - the amount on which interest is calculated.
PrincipalA person or company for whom an agent acts.The face value of a debt instrument such as a bond or a note.
Principal(1) The total amount of money being borrowed or lent. (2) The party affected by agent decisions in a principal-agent relationship.
Principal only (PO)Principal only (PO)
A mortgage-backed security (MBS) whose holder receives only principal cash flows on the underlying mortgage pool. All the principal distribution due from the underlying collateral pool is paid to the registered holder of the stripped MBS on the basis of the current face value of the underlying collateral pool.
Value additivity principalValue additivity principal
When the value of a whole group of assets exactly equals the sum of the values of the individual assets that make up the group of assets. Or, the principle that the net present value of a set of independent projects is just the sum of the net present values of the individual projects.
Additional principal paymentAdditional principal payment
Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.
Principal agent relationshipPrincipal agent relationship
Occurs when one person, an agent, acts on the behalf of another person, the principal.
Principal Exchange Rated Linked Securities (PERLS)Principal Exchange Rated Linked Securities (PERLS)
A debt instrument with its principal and interest denominated in U.S. dollars, but with principal repayment depending on the exchange rate of the U.S. dollar against a foreign currency.
Further SuggestionsRemaining principal balance