Glossary · Financing
What is Principal?
Principal is the original amount of money you borrow — separate from the interest you pay to borrow it.
Definition
When you take out a mortgage, the principal is the loan amount itself. Each payment chips away at the principal while also covering interest; over time, more of each payment goes toward principal.
Paying down principal builds equity. Extra payments applied to principal can shorten your amortization and save significant interest.
When principal matters
- Understanding what you actually owe
- Seeing how extra payments build equity
- Tracking your mortgage balance over time
With Homeprint
How Homeprint helps with principal
Homeprint helps you track your mortgage balance alongside your home's value so you can watch your equity grow.
- Keep every related document in one secure place
- Track your home's value and finances over time
- Stay connected with trusted neighbourhood experts
Principal — FAQ
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