Prepayment

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Dictionary Says

Definition of 'Prepayment'

1. The payment of a debt obligation prior to its due date.

2. The excess payment over a scheduled debt repayment amount.
Investopedia Says

Investopedia explains 'Prepayment'

1. Examples include deferred expenses such as rent and early loan repayments.

2. Mortgage pass-through securities are prone to prepayment risk during a period of falling interest rates, as mortgage payments tend to accelerate.
Search results for

'Prepayment'

  • CFA Level 1 Study Guide - Fixed Income Investments - Call and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/call-prepayment-risk.asp
    Investopedia's Free CFA Level 1 Exam Online Study Guide. Learn the sources
    of call and prepayment risk and why it can occur. Highlights ...

  • The Risks Of Mortgage-Backed Securities

    http://www.investopedia.com/articles/mortgages-real-estate/08/weighted-average-mbs.asp
    ... Focusing on the prepayment aspect of MBS, this article will introduce the concept
    of weighted average life (WAL), and explain its use in guarding against ...

  • Subprime Is Often Subpar

    http://www.investopedia.com/articles/pf/07/subprime.asp
    ... (Keep reading about this subject in Mortgages: Fixed-Rate Versus Adjustable-Rate.)
    Penalties Subprime 2/28 and 3/27 ARMs frequently have prepayment penalties. ...

  • Defeasance Reduces Commercial Real Estate Fees

    http://www.investopedia.com/articles/mortgages-real-estate/08/defeasance.asp
    ... Bonds, Options. Commercial real estate investors who favor fixed-rate debt financing
    occasionally find themselves having to pay prepayment penalties when they ...

  • Series 7 Study Guide - Debt Securities - Collateralized Mortgage ...

    http://www.investopedia.com/exam-guide/series-7/debt-securities/collateralized-mortgage-obligation.asp
    In this section collateralized mortgage obligations (CMOs) and prepayment
    risk. ... You may ask, "What's so risky about prepayment? ...

  • Profit From Mortgage Debt With MBS

    http://www.investopedia.com/articles/06/mortgagebackedsecurities.asp
    ... However, the cash flow can change from month to month depending on how many mortgages
    are paid off early - this is where the prepayment risk lies. ...

  • Understanding Mortgage-Backed Securities

    http://www.investopedia.com/video/play/what-are-mortgage-backed-securities
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • Subprime Lending: Helping Hand Or Underhanded?

    http://www.investopedia.com/articles/basics/07/subprime_basics.asp
    ... They often include prepayment penalties that do not allow borrowers to pay off the
    loan early, making it difficult and expensive to refinance or retire the ...

  • 5 Basic Things To Know About Bonds

    http://www.investopedia.com/articles/bonds/08/bond-market-basics.asp
    ... (To learn more, read Corporate Bonds: An Introduction To Credit Risk.) Prepayment
    Risk Prepayment risk is the risk that a given bond issue will be paid off ...

  • Interest-Only Mortgages: Home Free Or Homeless?

    http://www.investopedia.com/articles/mortgages-real-estate/08/interest-only.asp
    ... This risk premium takes the form of higher interest rates. This default risk can
    be offset by this loan's potential to reduce prepayment risk. ...

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