What is the legal term for the total amount owed on a mortgage?

The legal term for the total amount owed on a mortgage is referred to as the mortgage balance or principal balance. This term encompasses the total figure that the borrower has not yet paid back to the lender on the loan used to purchase the property. It represents the initial loan amount minus any principal that has been paid down over time.

Understanding this term is essential for both borrowers and lenders, as it dictates the outstanding debt related to the mortgage at any given point in time, reflecting the financial obligation the borrower has towards the lender.

In contrast, an amortization schedule outlines how much of each mortgage payment goes toward interest and principal over the life of the loan, rather than denoting the overall amount owed. The equity value represents the homeowner's interest in the property, calculated as the property value minus the mortgage balance, which does not indicate the total amount owed on the mortgage itself. The loan-to-value ratio is a financial term used to assess risk and determine the ratio of the mortgage amount to the appraised value of the property, not the total amount owed.