BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The amount of interest you pay on a loan is determined by the principal. When you make monthly payments on a loan, the amount of your payment goes first to cover accrued interest charges; only then is the remainder applied to your principal.

Detailed explanation-2: -The principal is the amount you borrowed and have to pay back, and interest is what the. For most borrowers, the total monthly payment you send to your mortgage company includes other things, such as homeowners insurance and taxes that may be held in an escrow account.

Detailed explanation-3: -Principal: The amount of debt, exclusive of interest, remaining on a loan. Principal and Interest to Income Ratio: The ratio, expressed as a percentage, which results when a borrower’s proposed Principal and Interest payment expenses is divided by the gross monthly household income.

Detailed explanation-4: -The principal is the amount of funding borrowed for your home loan, and the interest is the money paid monthly for use of the loan. Understanding both principal and interest can help you choose the best mortgage option for you.

Detailed explanation-5: -The principal is the original loan amount not including any interest.