principal payments

Definition

Payments made to reduce the amount of principal in a loan.

Use principal payments in a sentence

You should make sure that you are always making your principal payments on time to keep your credit score good.

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Given my mortgage company does not impose an prepayment penalty I have been making additional monthly principal payments to accelerate the payoff.

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Bryan was to pay his car loan off early by making periodic principal payments that reduced the amount of time he would spend making monthly payments.

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bi-weekly mortgage loan modified pass-through