What is my mortgage principal? What does it mean to pay it down?

Your mortgage principal refers to the original amount borrowed from a lender that needs to be paid back.

Specifically, the principal amount does not include interest owed for borrowing, insurance (e.g., private mortgage insurance, homeowners), or taxes. Though, these items will be included in your monthly mortgage payment.


For more contextual information on mortgage payments, visit our homebuying education resources.

And if you have more questions, we’d love to hear from you. You can reach us at customer@landed.com.