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.
TEXAS RESIDENTS: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A
MORTGAGE COMPANY OR RESIDENTIAL MORTGAGE LOAN ORIGINATOR
LICENSED IN TEXAS SHOULD SEND A COMPLETED COMPLAINT FORM TO THE
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING (SML): 2601 N. LAMAR
BLVD., SUITE 201, AUSTIN, TEXAS 78705; TEL: 1-877-276-5550. INFORMATION AND
FORMS ARE AVAILABLE ON SML'S WEBSITE: SML.TEXAS.GOV.
