The amount owed on a debt, whether the original Face Amount or the remaining (unpaid) debt on a loan that has been partially Amortized.
Principal balance
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Principal balance, in regards to a mortgage or other debt instrument, is the amount due and owing to satisfy the payoff of the underlying obligation.
Amortized mortgage loans automatically pay a portion of each monthly payment to the principal balance with the rest being paid as interest.
An interest-only loan does not require any monies be paid toward the principal balance each month, but is allowable.[1]
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