Finance
The 'principal balance' of a mortgage loan is:
AThe original loan amount that was disbursed at closing
BThe outstanding amount owed on the loan at any given point in time✓ Correct
CThe amount of interest paid to date
DThe difference between the home's value and the loan amount
Explanation
The principal balance is the current outstanding amount owed on the loan — the original amount borrowed minus all principal payments made to date. Early in a mortgage's life the principal balance decreases slowly; it accelerates as the loan matures.
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