Original Principal Balance – Owner Financing
Original Principal Balance
Definition: The original principal balance is the total amount of principal that is due and owed on a mortgage before any payments are processed.
Definition: A origination fee is a fee that a lender chargers for processing a loan application. It is formulated as a percentage of the mortgage amount.
Definition: Owner financing is a technique for home-financing through which a buyer borrows from a seller instead of a bank. It could also be in addition to borrowing from a bank. This is occasionally done when the borrower cannot afford a loan from the bank for the full amount.