Prepayment penalty
A fee assessed by a lender on a borrower who repays all or part of the principal of a loan before it is due.
A prepayment penalty is a monetary penalty enforced upon a borrower when he or she pays a loan off earlier than was originally agreed.
Prepayment penalty
A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity.
Yield maintenance is an actual payoff of the loan made up of two parts: the remaining principal balance on the loan and a prepayment penalty.
In some cases, the deposit broker may advertise that the CD does not have a prepayment penalty for early withdrawal. In those cases, the deposit broker will instead try to resell the CD if the investor wants to redeem it before maturity.
Call Price (in accounting)
Prepayment Penalty (business term)
Redemption (in accounting)
Callable (business term) ...
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: Interest, Rate, Interest Rate, Rally, Commercial
  
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