Principal

The principal is the actual dollar amount of the loan itself. On a traditional amortizing mortgage, each monthly payment is split between principal (which reduces the loan balance) and interest (the cost of borrowing).

Early in the loan, most of each payment goes to interest; later payments go mostly to principal. Paying extra principal early — or making biweekly payments — reduces total interest paid over the life of the loan.

Why it matters for Milo customers

On a Milo crypto-backed mortgage, the principal balance is the dollar amount you borrowed — independent of how your collateral's market value moves. Bitcoin can swing 30% in a week while your principal stays exactly where it was.

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