Mortgage Glossary

Principal Payment

A payment that is made directly to the principal amount of your loan as a way to reduce the remaining balance. It is a separate payment from your monthly mortgage payment. While your monthly payment goes toward principal, interest, taxes, and insurance, this additional payment goes toward principal only, saving you interest over the life of the loan.

View the Mortgage Glossary

Search for something...

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.