Loanfactz Definitions
Glossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
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Principal
The amount of money borrowed or the amount of the loan that has not yet been paid back to the lender. This does not include the * interest you will pay to borrow that money. The principal balance (sometimes called the outstanding or unpaid principal balance) is the amount owed on the loan at any given time.
Glossary For This Page
(In Alphabetical Order)
* Interest
The cost you pay to borrow money from a lender, expressed as a percentage of the amount borrowed. The interest is calculated in the monthly payment you make to the lender.
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