A homophone is a word with two spellings, two meanings and the same pronunciation. For instance "ant" and "aunt" or "been" and "bin".

"Principal" is another such word with a multitude of meanings. It can mean first in importance, the most important person or performer, a perpetrator, a significant participant, a responsible party, a represented person, or the most common usage; the person in charge of a school who's office most kids try to avoid being sent to.

"Principle" is also a word with several meanings. It can mean a basic assumption, an ethical standard, the means in which something works, a characteristic ingredient, another word for source, or theory. Principle can even refer to God in world of Christian Science.

However, one definition of "principle" that you will never find, is that which refers to the initial amount of money borrowed.

You know the "P" in P & I payment. That "P" is spelled principal not principle.

This mistake is made daily in our business, even recently in literature from Wells Fargo and Mortgage Coach among others. Maybe the funniest misuse of the "P" word though is when it appears right there on a competitor's Good Faith Estimate. What an opportunity for you!