How much the borrower has left to pay on the loan principal.
Principal broker
The licensed broker responsible for the operations conduced by the firm.
Principal meridian
Principal line running north and south in the government rectangular survey method. Other meridians, each 24 miles apart, are surveyed from the principal meridian.
Principal of supply and demand
Economic principle determining the market prices of goods, services, and property. The principle states that there is a pricing relationship between supply and demand. Economic forces interact affecting the overall pricing relationship. If demand increases and the supply remains constant, then the price will increase. However, an increase in price will then spur increased supply, which will tend to depress prices.
Principal residence
Primary residence of an individual; the place where a person lives most of the time. May be a single-family house, condominium, trailer or houseboat. A principal residence may qualify for a homestead rebate.
Principal, interest, taxes and insurance (piti)
Payment amount calculated to include the principal, interest, taxes and insurance on an amortizing loan and represents the borrower's actual monthly mortgage-related expenses.
Principle of conformity
The concept that a house will be more likely to appreciate in value if it is similar to other houses in the neighborhood.
Principle of progression
Appraisal term stating that the value of lower-end real estate is enhanced by the proximity of higher-end properties.
Principle of regression
Appraisal term stating that the value of higher-end real estate can be brought down by the proximity to lower-end properties.
Principle of substitution
Highest amount a property is worth equal to the amount that would have to be paid to buy equivalent property in the market place.
