Principal Balance The original amount of money borrowed or invested in a mortgage, excluding interest and fees. This is the core capital that the borrower is obligated to repay. For private mortgage servicers, accurately tracking the principal balance is paramount for compliance and transparent [...]

Cost of Capital The Cost of Capital represents the total rate of return a company must earn on its investments to satisfy both its creditors and shareholders. It's a critical metric for mortgage lenders and investors because it helps evaluate the profitability and risk [...]

Core Capital Cost Terminology Glossary Cost of Capital The Cost of Capital represents the minimum rate of return a company must earn on any new investment to maintain its current market value and attract additional funding. It essentially quantifies the cost of financing a [...]

Cost of Capital The total rate of return a company must achieve on its investments to maintain its market value and attract new financing. For private mortgage lenders and investors, understanding this cost is paramount for pricing loans competitively and ensuring profitability. It encompasses [...]

Capital Cost Capital cost refers to the total expenditure required to acquire, upgrade, or improve a long-term asset that will be used for more than one accounting period. For private mortgage servicing, understanding these initial investments in technology platforms, specialized legal counsel, or new [...]