Principal Balance definition: Copy, customize, and use instantly
Introduction
The term "Principal Balance" refers to the remaining amount of a loan or debt that needs to be repaid, excluding interest, fees, and other charges. It is crucial for understanding the outstanding amount that a borrower is obligated to pay back to the lender. The principal balance is a key component in loan amortization schedules and determines the base on which interest is calculated.
Below are various examples of how "Principal Balance" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Principal Balance" as the outstanding amount of a loan
This definition ties "Principal Balance" to the remaining amount owed on a loan after payments are made.
"Principal Balance" means the total amount of money that remains unpaid on a loan after subtracting any principal payments made by the borrower, excluding interest and other charges.
Definition of "Principal Balance" as a key figure in loan amortization
This definition connects "Principal Balance" to its role in determining how much of the loan’s principal is paid off during each period.
"Principal Balance" refers to the amount of the original loan that has not yet been repaid, calculated after any payments made, and is used to determine the periodic amortization of the loan.
Definition of "Principal Balance" in relation to a mortgage loan
This definition links "Principal Balance" to its use in a mortgage loan context, where the balance is key to understanding the amount owed.
"Principal Balance" means the outstanding portion of a mortgage loan, excluding interest, that is due to be repaid by the borrower over the life of the loan.
Definition of "Principal Balance" for credit obligations
This definition ties "Principal Balance" to a credit obligation, such as a line of credit or credit card, where the balance represents the amount of credit used by the borrower.
"Principal Balance" refers to the total amount of credit that has been drawn and is outstanding on a credit facility, excluding any accrued interest, fees, or charges.
Definition of "Principal Balance" for debt repayment calculations
This definition connects "Principal Balance" to its use in calculating debt repayment amounts.
"Principal Balance" means the remaining unpaid amount of the debt on a loan or credit agreement, which serves as the basis for calculating monthly repayment amounts.
Definition of "Principal Balance" for business loans
This definition links "Principal Balance" to its use in business loans, where it indicates the remaining liability the business has toward the lender.
"Principal Balance" refers to the amount still owed by a business under a loan agreement, excluding interest and fees, and is used in financial calculations related to the loan.
Definition of "Principal Balance" in a loan agreement
This definition applies "Principal Balance" to loan agreements, where it represents the amount of the loan yet to be repaid.
"Principal Balance" means the amount of the original loan principal that remains unpaid as of the date specified in the agreement, excluding any interest or fees added.
Definition of "Principal Balance" as a factor in loan payoff
This definition connects "Principal Balance" to its role in determining how much a borrower must pay to settle a loan.
"Principal Balance" refers to the remaining loan amount, excluding interest, that must be paid to fully repay the loan and terminate the financial obligation.
Definition of "Principal Balance" for calculating interest
This definition ties "Principal Balance" to the calculation of interest on loans, as interest is often based on the remaining principal balance.
"Principal Balance" means the amount of the loan that is used to calculate the interest charges, as interest is typically applied to the unpaid principal balance.
Definition of "Principal Balance" for personal loans
This definition links "Principal Balance" to personal loans, where it represents the outstanding amount owed by the borrower to the lender.
"Principal Balance" refers to the remaining sum of money owed under a personal loan agreement, excluding any accrued interest or fees.
Definition of "Principal Balance" in a secured loan context
This definition connects "Principal Balance" to secured loans, where the outstanding amount is often secured by collateral.
"Principal Balance" means the remaining amount of a secured loan that must be repaid, excluding interest, fees, and charges, and secured by collateral.
Definition of "Principal Balance" for a loan schedule
This definition links "Principal Balance" to its use in a loan repayment schedule.
"Principal Balance" refers to the balance of the loan that remains after accounting for previous payments, which is used in loan schedules to determine future payments and interest charges.
Definition of "Principal Balance" in relation to student loans
This definition applies "Principal Balance" to student loans, where it represents the outstanding amount the borrower is obligated to repay.
"Principal Balance" refers to the portion of the student loan that has not yet been paid off, excluding interest, which the borrower must pay back in the future.
Definition of "Principal Balance" for mortgage amortization
This definition connects "Principal Balance" to mortgage amortization, a process where the loan principal is paid down over time.
"Principal Balance" means the remaining amount of a mortgage loan, which is amortized over the life of the loan through regular payments of principal and interest.
Definition of "Principal Balance" for loan refinancing
This definition links "Principal Balance" to loan refinancing, where the balance plays a role in restructuring the loan terms.
"Principal Balance" refers to the remaining amount of the loan that is considered when refinancing, influencing the new terms of the refinanced loan agreement.
Definition of "Principal Balance" in loan prepayment scenarios
This definition connects "Principal Balance" to prepayment, where the borrower may choose to pay off the remaining balance early.
"Principal Balance" means the total amount of the loan that remains unpaid and can be fully or partially paid off ahead of the agreed schedule through prepayment.
Definition of "Principal Balance" for car loans
This definition ties "Principal Balance" to car loans, where it represents the amount of money still owed after car payments.
"Principal Balance" refers to the remaining balance of a car loan, which excludes any interest or fees, and is the amount the borrower must pay off to own the vehicle outright.
Definition of "Principal Balance" in revolving credit facilities
This definition links "Principal Balance" to revolving credit facilities, such as credit lines or credit cards.
"Principal Balance" means the amount of credit drawn by the borrower under a revolving credit facility, excluding interest and fees, and is the balance that must be repaid.
Definition of "Principal Balance" for debt consolidation loans
This definition applies "Principal Balance" to debt consolidation, where it reflects the total remaining debt.
"Principal Balance" refers to the total remaining balance on loans being consolidated, which is combined into a new loan for easier repayment.
Definition of "Principal Balance" for corporate loans
This definition connects "Principal Balance" to corporate loans, where it represents the outstanding amount the company owes.
"Principal Balance" refers to the remaining unpaid amount of a corporate loan, excluding any interest, fees, or other charges, that the business must repay.
Definition of "Principal Balance" in the context of a bridge loan
This definition ties "Principal Balance" to bridge loans, where it helps assess the loan's current status.
"Principal Balance" means the amount of the original loan that has not been repaid in full, typically used in the context of a short-term bridge loan to cover financial gaps.
Definition of "Principal Balance" for credit card debt
This definition links "Principal Balance" to credit card debt, which is carried month to month.
"Principal Balance" refers to the amount of outstanding credit card debt, excluding any interest or fees that the borrower must repay.
Definition of "Principal Balance" for home equity loans
This definition connects "Principal Balance" to home equity loans, where it represents the remaining amount owed on the property.
"Principal Balance" means the outstanding amount of a home equity loan, excluding interest and fees, that must be repaid by the borrower based on the terms of the loan agreement.
Definition of "Principal Balance" in asset-backed loans
This definition ties "Principal Balance" to asset-backed loans, where the balance reflects the remaining amount secured by assets.
"Principal Balance" refers to the amount remaining on a loan secured by assets, such as real estate or equipment, excluding any accrued interest or additional charges.
Definition of "Principal Balance" for a line of credit
This definition applies "Principal Balance" to a line of credit, where it represents the outstanding drawn amount.
"Principal Balance" means the total amount drawn against a line of credit, excluding interest and fees, which must be repaid by the borrower.
Definition of "Principal Balance" for a revolving loan
This definition connects "Principal Balance" to a revolving loan, where the balance changes as the borrower borrows and repays.
"Principal Balance" refers to the current amount outstanding on a revolving loan, excluding interest and fees, at any given time during the life of the loan.
Definition of "Principal Balance" in the context of a fixed-rate loan
This definition links "Principal Balance" to fixed-rate loans, where it remains the same for the duration of the loan, excluding interest.
"Principal Balance" means the fixed amount of the loan principal that remains due over the term of the loan, excluding any interest, fees, or other charges.
Definition of "Principal Balance" in a debt agreement
This definition ties "Principal Balance" to a broader debt agreement, representing the amount owed without the added charges.
"Principal Balance" refers to the portion of the debt that remains unpaid under the terms of a debt agreement, excluding interest, penalties, or other adjustments.
Definition of "Principal Balance" in commercial real estate loans
This definition connects "Principal Balance" to commercial real estate loans, where it represents the remaining balance due on the loan secured by the property.
"Principal Balance" refers to the unpaid portion of a commercial real estate loan, excluding any accrued interest or other related charges.
Definition of "Principal Balance" for installment loans
This definition ties "Principal Balance" to installment loans, where it represents the remaining unpaid amount of the loan after periodic payments.
"Principal Balance" means the remaining balance on an installment loan, excluding interest, that the borrower is obligated to pay over the life of the loan.
Definition of "Principal Balance" in student loan refinancing
This definition links "Principal Balance" to the refinancing of student loans, where the principal is adjusted based on new terms.
"Principal Balance" refers to the amount remaining on a student loan after refinancing, excluding interest, which is carried forward under the new loan agreement.
Definition of "Principal Balance" for an interest-only loan
This definition connects "Principal Balance" to interest-only loans, where the borrower only pays interest for a specified period, and the principal balance remains unchanged.
"Principal Balance" means the amount owed under an interest-only loan, which remains constant until principal payments begin after the interest-only period ends.
Definition of "Principal Balance" in private equity financing
This definition applies "Principal Balance" to private equity financing, where the balance represents the amount of capital invested that remains outstanding.
"Principal Balance" refers to the outstanding amount of capital invested in a private equity deal, excluding any profits or dividends that may have been paid out.
Definition of "Principal Balance" for debt restructuring
This definition ties "Principal Balance" to debt restructuring, where the balance of the debt is adjusted or modified in the process.
"Principal Balance" means the remaining amount of debt being restructured, which may be adjusted or renegotiated as part of the debt restructuring process.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.