---
title: "Principal — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/principal/
---

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Mortgage & lending[All terms starting with P](/glossary/#letter-P)

# Principal

The amount borrowed and still owed, separate from the interest charged on it.

Principal is the balance itself. Each payment reduces it a little, and interest for the next period is charged on whatever remains.

An extra payment applied directly to principal removes all the future interest that balance would have generated, which is why extra principal early in the schedule is worth far more than the same amount later.

## Put a number on it

This term is an input in the calculator below.

- [Mortgage Payment CalculatorEstimate monthly mortgage payments with taxes, insurance, and PMI.](/calculators/mortgage-payment/)

## Related terms

- [AmortizationThe schedule that splits each mortgage payment between interest and principal over the life of the loan.](/glossary/amortization/)
- [Interest rate (note rate)The percentage charged on your loan balance, the number your principal and interest payment is calculated from.](/glossary/interest-rate/)
- [RecastRe-amortizing an existing loan after a large principal payment, lowering the monthly payment while keeping the rate and term.](/glossary/recast/)
- [EquityThe difference between what a property is worth and what is owed against it.](/glossary/equity/)

## Go deeper

- [Biweekly and extra principal vs refinancing](/blog/biweekly-extra-principal-vs-refinance/)

## More in Mortgage & lending

- [Amortization](/glossary/amortization/)
- [APR (Annual Percentage Rate)](/glossary/apr/)
- [ARM (Adjustable-Rate Mortgage)](/glossary/arm/)
- [Cash-out refinance](/glossary/cash-out-refinance/)
- [Closing costs](/glossary/closing-costs/)
- [Conforming loan](/glossary/conforming-loan/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)

Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. [Licensing and disclosures](/licensing/)