The "principal" on a mortgage loan refers to the outstanding balance due on the original loan amount. As time goes by and you diligently make your monthly payments, the principal balance gradually decreases.
It's like watching a savings account grow in reverse – instead of depositing money, you're reducing what you owe. It's a wonderful feeling to see that number decrease over time, inching you closer to the glorious moment when you finally pay off your mortgage in full.
So, the principal balance is not just a number on your statement; it's a measure of progress, a symbol of your commitment, and a sign that you're building equity in your home.
SI Home Loans is a licensed mortgage broker company operating in Florida and soon expanding to Colorado. All loan approvals and rates are based on individual credit qualifications and are subject to change without notice. This is not a commitment to lend. Equal Housing Opportunity. NMLS # 2460135
