Repayments of Principal

Repayments of Principal refers to the level of mortgage borrowing for a residential application that is paid back to the lender over a period of time.

In Repayments of Principal, homeowners may make repayments via full redemptions, which is when a loan matures before the full amount is repaid. This is often accomplished with the help of endowment funds or other sources of investment.

Lump-sum repayments may also reduce the total amount of mortgage debt, although they will not eliminate it altogether.