additional principal payment


A payment by a borrower of more than the scheduled principal amount due in order to reduce the principal. This also enables the borrower's future interest payments to be reduced.

Use this term in a sentence

You may want to try and ask for an additional principal payment if you think that it is needed for what you are loaning.

​ Was this Helpful? YES  NO 6 people found this helpful.

They made an additional principal payment and that meant that things were looking as though they would change and get worse.

​ Was this Helpful? YES  NO 11 people found this helpful.

The additional principal payment that Dave made really helped in lowering the overall interest on his mortgage and he was motivated by that fact.

​ Was this Helpful? YES  NO 7 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
additional premium additional voluntary contributions