After this time, the principal balance is amortized for the remaining term.
Under the deal being negotiated, the county would have until June 30, 1996, to repay the $975 million principal balance on the notes.
Most loans include payments towards the principal balance of the mortgage.
At the end of the loan term, one year and renewable, the entire principal balance will be payable in full.
As a result, a slightly greater amount will be applied toward reduction of the principal balance.
In such cases, the unpaid interest is capitalized and added to the principal balance once per year.
Leaving the principal balance on a mortgage untouched, however, carries risks.
The note carried a 14.99 percent interest rate on the new principal balance of $46,541.08.
As with any other type of mortgage, the principal balance will eventually have to be repaid.
He had been paying an extra $100 a month toward the principal balance for five years.
