The original principal balance on a loan is the amount of the loan before any payments are made. This means that a loan in the amount of $130,000 will have an original principal balance of $130,000. This does not mean that the homeowner will only have to pay $130,000. Lenders will tack on interest as well as other fees to close the loan. Keep in mind that closing costs are generally not included in the original principal balance unless they are rolled into the loan. When you get your amortization schedule, which is the payment schedule for your home loan, make sure that this amount matches with the amount that you think you are taking out. If there are any discrepancies, make sure that your lender knows about them before you sign any loan documents.