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    dancingdobes's Avatar
    dancingdobes Posts: 27, Reputation: 1
    New Member
    		  
    #1

    Mar 7, 2007, 08:48 AM
    principal balance
    what is the principal balance on the automobile mean?
    is that the remaining balance that is owed on the vehicle? I am trying to find out what kind of equity I have in my vehicle

    approximate value of car minus the principal balance equals the equity

    ?? Principal balance is that the balance that I owe on the car
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Mar 7, 2007, 12:53 PM
    These terms refer to ANY loan.

    The principal balance is the remaining amount of the original amount borrowed. On any loan, interest comes off the top. So, at the beginning of the loan, a larger portion of your payment goes towards interest with a smaller amount going to reduce the prinicpal. As you make payments, the portion going towards interest decreases while the portion going towards interest increases.

    Its also referred to as the payoff balance.
    missk's Avatar
    missk Posts: 517, Reputation: 44
    Senior Member
    		  
    #3

    Mar 14, 2007, 09:54 PM
    Did you know that you can make additional payments to the principal and this will help you pay it off faster.
    missk's Avatar
    missk Posts: 517, Reputation: 44
    Senior Member
    		  
    #4

    Mar 15, 2007, 08:16 AM
    Well sorry. I was just trying to be helpful.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #5

    Mar 15, 2007, 08:18 AM
    Quote Originally Posted by missk
    Well sorry. I was just trying to be helpful.
    I'm sure you were. But if your answer has no bearing on the question asked, then it really isn't of any help.
    missk's Avatar
    missk Posts: 517, Reputation: 44
    Senior Member
    		  
    #6

    Mar 15, 2007, 08:41 AM
    Okay mr computer expert you have made your point now let it go
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