44:. For these common loans, each monthly payment includes both interest and principal. The unpaid principal balance at the beginning of a given month is reduced by that portion of the level payment that is designated principal for that month; so that the unpaid principal balance at the end of the month is the beginning UPB less the principal paid for the month. Hence, the UPB decreases over time.
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A $ 100,000 loan with an original UPB with a nominal 6% annual rate loan. The monthly interest rate is therefore .5% (6% divided by 12 months). The level monthly payment for a 30-year mortgage loan is $ 599.55.
37:, the original unpaid principal balance is the amount borrowed, and therefore the amount the borrower owes the lender on the origination date of the loan.
72:$ 100,000.00 original UPB less $ 99.55 yields the UPB at the end of the first month (beginning of second month) of $ 99,900.45
69:$ 599.55 monthly payment less $ 500.00 interest yields $ 99.55 as the principal amount in the first monthly payment
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121:"What is UNPAID PRINCIPAL BALANCE? definition of UNPAID PRINCIPAL BALANCE (Black's Law Dictionary)"
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The unpaid principal balance will decrease as time goes on for the loans that are structured with
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This process is repeated for each subsequent month to calculate the UPB on a monthly basis.
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The first month interest of .5% of $ 100,000.00 yields $ 500.00
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The UPB at the end of first month is calculated as follows:
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For a typical consumer loan such as a home mortgage or
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16:Portion of a loan not remitted to the lender
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52:Showing how UPB decreases each month
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