Loan basics
Principal
Also known as: loan principal
The amount of loan balance you still owe, not including interest.
Principal is the unpaid balance of your mortgage. Each payment typically covers interest first, then reduces principal. Extra payments applied to principal can shorten the loan and reduce total interest paid over time.
See also
Definitions are for general education. Loan products, insurance, and taxes vary by lender, location, and your situation. FinanceFlow calculators produce estimates only and are not a lender quote or professional advice.