Prepayment is early repayment of a loan by a borrower.
In the case of a mortgage-backed security (MBS), prepayment is perceived as a risk, ...
Prepayment is
The premature payment of all or part of a debt. Prepayment means paying off due balance partially or entirely before the loan term expires. Prepayment is done with the purpose of accumulating less interest for the borrower.
Prepayment Penalty
Financial Dictionary - Loans - Prepayment Penalty
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Prepayment Penalty ...
Prepayments
A company may pay for goods or services before they have been received. Any amounts that have been paid for goods and services not received by the end of an accounting period are shown in the balance sheet as prepayments.
Prepayment
A payment made in excess of scheduled mortgage principal repayments. Prepayments affect not only borrowers and lenders but also investors in real estate securities. Important concepts in this area include: ...
Prepayment speed
Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. ...
prepayment-type adjusting entry
See deferral-type adjusting entry.
» For more clarity on this term: ...
Prepayments
Payments made in excess of scheduled mortgage principal repayments.
Related Terms: ...
prepayment
In general: paying a debt obligation before it comes due.
For a lender, such prepayments are desirable if interest rates have risen since a loan was made. They are undesirable if interest rates have fallen. For most forms of consumer debt, prepayment rates exhibit little correlation with interest rates.
Prepayment Clause
Definition: Clause in a contract giving the borrower the right to pay a loan off prior to its due date.
Prepayment
Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from a sale of the property, the owner's decision to pay off the loan in full, or a foreclosure.
PSA Prepayment Rate
Definition: [crh] The Bond Market Trade Association's Mortgaged Asset-Backed Securities Division's prepayment model based on an assumed rate of prepayment each month of the then unpDefinition: aid principal balance of ...
FHA PREPAYMENT EXPERIENCE - The percentage of loans in a pool of mortgages outstanding at the originati...
FHFB - Federal Housing Finance Board
FHLB - See Federal Home Loan Bank System.
Zero prepayment assumption
The assumption of payment of scheduled principal and interest with no payments.
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No references found ...
CONSTANT PREPAYMENT RATE (CPR) - A measure of the historical or expected prepayment of principal on a m...
CONSTANT RATIO PLAN - Maintaining a predetermined ratio between stock and fixed income investments thro...
Prepayment
An unscheduled payment of principal on a mortgage-backed security, which results when a homeowner pays off or refinances a mortgage prior to maturity.
Prepayment risk ...
prepayment penalty: a charge that may be levied against somebody who makes a payment before its due date. The penalty compensates the lender or seller for potential lost interest.
Prepayment Penalties - Charges assessed to a borrower if an account is paid off before the due date.
PREPAYMENT PENALTY A penalty under a note, mortgage or deed of trust imposed when the loan is paid before its maturity date.
PREPAYMENT PENALTY
A fee charged in addition to interest and fees. a fee paid by a borrower who pays off the loan before it is due.
PRINCIPAL
One of the parties to a contract; or the amount of money borrowed, for which interest is charged.
Prepayment Charge (Real Estate):
A fee charged by the lender when the borrower prepays all or a portion of a mortgage loan, more quickly than provided for in the mortgage agreement.
Prepayment Options (Real Estate): ...
Prepayment Options (Real Estate): A clause in a mortgage agreement which specifies when and how prepayments may be made.
Prepayment : Provision made for loan payments to be larger than those specified in the note.
Principal : This term is used to mean the amount of money borrowed or the amount of the loan.
Prepayment: The ability to repay installment credit before it is due, or to pay off a loan before its maturity date.
Prepayment
A premature payoff of a loan. Prepayments can be made for the total or partial value of the loan.
Price Basing ...
Prepayment Privilege. The right to prepay a mortgage without penalty.
prepayment estimate
A reasonable and supportable forecast of loan prepayments. In the case of a mortgage-backed security, it is the forecast of principal amortization caused by loan prepayments.
Prepayment penalty - A charge imposed on a borrower who pays off the loan principal early. This penalty compensates the lender for interest and other charges that would otherwise be lost.
Prepayment risk
The risk that falling interest rates will lead to heavy prepayments of mortgage or other loans-forcing the investor to reinvest at lower prevailing rates.
Present Value ...
Prepayment penalty
Most lenders allow you to prepay the outstanding balance of a loan at any time without a fee, but some lenders charge a prepayment penalty, often about 2% of the amount you borrowed.
Prepayment - additional payment(s) made under a loan that are over and above the payments specified under the loan contract.
Principal - the amount of capital deposited or borrowed, upon which interest is paid or charged.
Prepayment
Paying off all or part of a loan before it is due.
Primary Care Loan (PCL)
A low interest loan administered by the US Department of Health and Human Services (HHS).
Prepayment: A loan repayment made in advance of its contractual due date.
Prepayment Penalty: A penalty under a note, mortgage or deed of trust imposed when the loan is paid before its maturity date.
Prepayment
A payment made by the borrower over and above the scheduled mortgage payment. If the additional payment pays off the entire balance it is a "prepayment in full"; otherwise, it is a "partial prepayment.
Prepayment Risk In a mortgage-backed security, the threat of uncertainty concerning the timing of cash flow.
prepayment penalty: A penalty assessed to discourage a borrower from making early payments on a loan.
Prepayment Clause
A provision in a loan agreement that stipulates the amount of principal a borrower can prepay ahead of schedule without penalty as well as the prepayment penalty for larger prepayments.
Prepayments to supplier
In developed economies publishers may buy coeditions for the exclusive licence to publish in a language from foreign publishers or book "packagers".
Prepayment: Repayment of greater than the scheduled principal amount. If a project company is forced to prepay principal with excess cash flow, then it is referred to as a mandatory prepayment.
PREPAYMENTS BY CUSTOMERS arise from transactions such as selling magazine subscriptions in advance, selling gift-cards, selling tickets well before a scheduled event, ...
PREPAYMENT RISK The possibility that, as interest rates fall, homeowners will refinance their home mortgages, resulting in the prepayment of GNMA securities, and possible decline in net asset values of GNMA Funds.
Prepayment penalty
A lender's charge to the borrower for paying off the loan before the end of the term. It is present in some mortgages, preventing borrowers from rapidly refinancing.
Principal ...
Prepayment - Is an additional principal amount in excess of the required amount paid by the mortgagor to reduce the open mortgage balance.
Prepayment Penalty - Refers to a cost which may be charged against a borrower in the event of a prepayment.
Prepayment Account
Sometimes the taxpayer has a 1- or 2-cent additional per-gallon charge on the invoice. This money is placed in somewhat of a savings account.
Prepayments are cash outlays made in advance of receipt of goods or services.
Prescribed ...
Prepayment Penalty:
A penalty imposed on a borrower for repaying the loan before its due date. (In the case of a mortgage, this applies when there is not a prepayment clause in the mortgage note to offset the penalty.)
Previous Balance: ...
A prepayment premium that allows investors to attain the same yield as if the borrower made all scheduled mortgage payments until maturity.
The prepayment rate of an MBS coupon that will produce the same cash flow yield (CFY) as that of a predetermined benchmark MBS coupon.
Most prepayment plans are sponsored by individual states and apply to the public institutions in the state, some state plans cover both public and private institutions in the state, ...
Related: Prepayment speed
Spider
See: SPDRs
Spike
Order ticket that shows the stock, price, number of shares, type, and account of the order. Origin: Practice of placing the ticket on a metal spike upon execution or cancellation.) Spike is ...
6- Avoid prepayment plans
There's a reason why the cable company is always trying to push you into prepayment plans. Authorizing your creditors to dip directly into your bank account is essentially condemning yourself to financial ignorance.
Lag response of prepayments
A delay of typically about three months between the time the weighted-average coupon of an MBS pool crosses the threshold for refinancing and observation of an acceleration in prepayment speed is observed.
health insurance, prepayment plan providing services or cash indemnities for medical care needed in times of illness or disability.
Planned amortization class (PAC) (1) The class of CMO that has the most stable cash flows and the lowest prepayment risk of any class of CMO. Because of a stable cash flow, it is considered the least risky CMO.
[Harvey] break-even payment rate The prepayment rate of a MBS coupon that will produce the same CFY as that of a predetermined benchmark MBS coupon.
They differ from PAC bonds whose amortization is guaranteed as long as prepayments on the underlying mortgages do not exceed certain limits. A TAC's schedule is met at only one prepayment rate.
prepayment The payment of all or part of a debt preceding its due date. prepayment penalty A penalty sometimes burdened on a borrower who makes a prepayment.
PSA A prepayment model based on an assumed rate of prepayment each month of the then unpaid principal balance of a pool of mortgages.
When interest rates rise, there will be lower prepayments of the principal; companion bonds therefore absorb most of the prepayment risk of a CMO.
 See also: Banks, Expense, Prepayments, Values, Funding
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