Sentences with phrase «principal portions of the debt»

This is done by amortizing the debt, which involves calculating the interest and principal portions of the debt separately, allowing for the recording of interest expense and the making of adjustments to the debt's carrying value on the balance sheet.

Not exact matches

But, unlike the typical installment loan, the portion that goes toward principal may not be enough to repay the debt by the end of the term.

A lower interest rate allows for a higher portion of your payments to go towards paying off the principal of the loan, so you can pay off the debt faster.

It mandates principal reductions and does not permit new subordinate liens to be used to pay off some portion of the existing mortgage debt, even if that debt were secured by the value of the property.

You retire your existing credit card debt more quickly when a bigger portion of each payment goes towards retiring principal.

Reduce the cost of the debt so that a greater portion of each payment can be applied to the principal balance

A payment holiday (sometimes referred to as a payment pause or a flexible mortgage, depending on the lender) allows you to temporarily stop paying your principal payment — the portion of your loan that is actually applied to your debt — due to a personal crisis.

Debt amortization is typically performed using an amortization table, which contains columns for the beginning loan balance, the interest component of the loan payment, the principal portion of the loan payment, and the ending loan balance.

Of course, each mortgage payment pays down a larger portion of the loan, so the reality is that we should be debt - free in about 20 years, assuming no additional payments towards principaOf course, each mortgage payment pays down a larger portion of the loan, so the reality is that we should be debt - free in about 20 years, assuming no additional payments towards principaof the loan, so the reality is that we should be debt - free in about 20 years, assuming no additional payments towards principal.

«Whereas paying rent guarantees a place to sleep, paying a monthly mortgage eliminates a portion of the principal of the loan, reducing debt and potentially increasing net worth,» she says.

When federal agencies publish debt figures, those figures usually include only the portion of the original principal balance remaining.

Federal legislation enacted last year allows homeowners who negotiate loan modifications with lenders and have portions of their principal debt eliminated to escape income tax liability for the amount forgiven.

A lender will, on occasion, forgive some portion of a borrower's debt, or reduce the principal balance.

A law enacted in 2007 provided temporary relief to troubled borrowers when some portion of mortgage debt is forgiven and the mortgage covers the borrower's principal residence.

Some of these options include forbearance (e.g. forgiving a portion of the debt or late charges); deferment; renegotiating interest rate, monthly payment amount, principal amount, maturity date; or the enforcement of an acceleration clause in the loan.

Even the smallest tax refund can help pay a portion of outstanding debt, like a mortgage, car payment, credit card balance or student loan, giving your principal power over high interest.

Lenders sometimes extend debt relief to borrowers who sell their principal residence for less than the outstanding mortgage balance, creating a tax liability for the canceled portion of the mortgage.