Conversations with a Pug - What is meant by ‘Principal and Interest’? -

Conversations with a Pug – What is meant by ‘Principal and Interest’?

What-is-meant-by-‘Principal-and-Interes

 

 

What is meant by ‘Principal and Interest’?

 

Principal and Interest is the standard type of repayment for most home loans.

The borrower makes regular repayments that include a portion of the principal repaid and the interest that is charged on the outstanding loan amount.

Over time the principal portion of the repayment will increase and so the outstanding loan balance also reduces.

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