Prepayment penalty

Prepayment Penalty
Financial Dictionary - Loans - Prepayment Penalty
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Prepayment Penalty ...

Prepayment Penalty
A fee that may be charged to a borrower who pays off a loan before it is due.

Prepayment Penalty
A penalty imposed upon a mortgagor for paying the mortgage before it becomes due, when there is no prepayment clause.

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 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 Penalty: On a loan without a prepayment clause, the fee a borrower pays for repaying all or part of the loan before it is due.

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 penalty
A fee that must be paid to the lender if the borrower prepays a loan within a defined time period. Many consumer loans, especially residential mortgage loans, do not have prepayment penalties.
prepayment rate ...

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 penalty
A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity.

Prepayment Penalty: a provision in some loans that charge a fee to a borrower who pays off a loan before it is due.
Pre-Foreclosure sale: allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure.

Prepayment penalty
A charge imposed by the lender if the borrower pays off the loan early. The charge is usually expressed as a percent of the loan balance at the time of prepayment, or a specified number of months interest.

prepayment penalty: A penalty assessed to discourage a borrower from making early payments on a loan.

Prepayment Penalty
A fee or cost charged to the borrower for paying off the loan before the end of the term.

hard prepayment penalty - A prepayment penalty on sale and refinancing will be a hard one.
soft prepayment penalty - If it applies to refinancing only, it will be a soft one.

prepayment penalty
fee paid by a borrower to a bank when a loan or mortgage that does not have a prepayment clause is repaid before its scheduled maturity. Prepayment penalties are prohibited in many states, and by FANNIE MAE and freddie mac.

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 Penalty - Refers to a cost which may be charged against a borrower in the event of a prepayment.

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: ...

Pre-Payment Penalty - A fee charged by a lender if the borrower pays the loan off early, generally to make up for interest the lender anticipated earning but will not earn as a result of the payoff. Not all loans have a prepayment penalty.

INTERIM REFINANCE - An ill-advised scheme to avoid a prepayment penalty by refinancing twice instead of...
INTERIM STATEMENT - a financial report covering only a portion of a fiscal year (prepared by accountant...

Prepayment Penalty (in banking)
Spread (business term)
Credit Risk (in banking)
Competitive Bid Option (in banking)
Floating Rate Certificate of Deposit (in banking)
Variable Rate Loan (in banking)
Selling Short (finance term) ...

A prepayment penalty automatically makes a mortgage a non-conforming loan. A loan originated with an excessively high loan to value (LTV) will be a non-conforming loan.

To compensate for the prepayment risk (which is a reinvestment risk), prepayment penalty clause is often included into the loan contract.[1] ...

The creditor combines or "wraps" the remainder of the old loan with the new loan at the intermediate rate. Often used to avoid a prepayment penalty or a due on sale clause. Can refer to a wraparound deed of trust or contract for deed.

An asset account showing interest that has been paid in advance, which is expensed and charged to the borrower's P & L statement.
Prepayment penalty ...

closing, plus the interest they pay on the first year of the loan, in addition to any pre-payment penalty associated with the loan (yes, odds say when a borrower gets bad advise on a program, they get stuck in a bad loan with a prepayment penalty to).

prepayment penalty A charge levied by a lender to the holder of a loan or mortgage when the borrower pays off the loan before its scheduled maturity.

prepayment penalty A penalty sometimes burdened on a borrower who makes a prepayment. prepayment privilege A clause in certain loans, permitting the borrower to pay off the debt prior...

See also: Prepayment, Banks, Fraud, Expense, Power of attorney