The phrase "outstanding principal" refers to the amount of money that still needs to be paid back on a loan or debt. It is the remaining balance that has not yet been repaid. Full definition
The fee is calculated on the basis of the remaining outstanding principal balance of the loan prior to applying the current payment. (goodfinancialcents.com)
For those who are considering refinancing, one of the biggest concerns are the fees associated with the process, which can rise to up to 6 percent of outstanding principal with other lenders. (columbiabankonline.com)
They take a 1 % on the total outstanding principal so their fees reduce as the principal balance is reduced. (lendacademy.com)