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Principle Due
The portion of a loan or mortgage payment that reduces the original amount borrowed; it does not include interest or additional fees.
Interest Rate
The percentage of an amount of money charged for its use per a certain period, often annually, by a lender to a borrower.
Compounded Annually
A method of calculating interest where the interest earned each year is added to the principal, forming a new base for future interest calculations.
Mortgage
A type of loan typically used to purchase real estate, where the property itself serves as collateral for the loan.
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