Business and Personal Finance Dictionary

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• CURRENT PRINCIPAL VALUE
  
  Is the adjusted outstanding amount of mortgage indebtedness. It is computed by multiplying the initial principal amount by the Current Principal Factor. This factor reflects any accretions in part due to negative amortization, any ordinary principal payments and accelerated principal payments. The greater the divergence between the ordinary expectation for principal and current principal amount is a reflection of the prepayment events.
  
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