Additional Principal Payment
Barron's Real Estate Dictionary:
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Additional Principal Payment
Voluntary payment in addition to the established payment amount applied against the loan principal to shorten the length of the loan.
Example: A $100,000 loan at 6% interest requires a monthly principal and interest payment of $599.55 per month to amortize over 360
months (30 years). An additional principal payment of $100 per month will amortize the loan over 252 months (21 years).
Example: A $100,000 loan at 6% interest requires a monthly principal and interest payment of $599.55 per month to amortize over 360
months (30 years). An additional principal payment of $100 per month will amortize the loan over 252 months (21 years).
| Additional First-Year Depreciation, Addendum | |
| Additional Rent, Adjacent |
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Additional Principal Payment
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Barron's Real Estate Dictionary
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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