Buydown Example

Principal Balance
The principal balance is the amount of the original loan amount left to pay off. It does not include interest. If Kelly borrows $200,000 and his monthly payments are split $500 to interest and $500 to principal, his principal balance after the first monthly payment will be $199,500.

The principal balance is the amount of the original loan amount left to pay off. It does not include interest. If Kelly borrows $200,000 and his monthly payments are split $500 to interest and $500 to principal, his principal balance after the first monthly payment will be $199,500.