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  • noun

Words related to prepayment

payment in advance

References in periodicals archive ?
These authors also find that a mortgage with a prepayment penalty that lasts more than three years is 20 percent more likely to end up in foreclosure than a mortgage without a prepayment penalty.
If someone has good credit, [they] may be offered a much lower interest rate in exchange for the prepayment penalty.
Many lenders do not have the time to maintain the prepayment penalty guidelines and requirements from individual investors, state governments and the federal government," said Monte Larsen, Chief Marketing Officer at DocuTech.
The CRL research shows that a majority of rural borrowers who received subprime loans in 2002 -- nearly 63 percent -- had a prepayment penalty with a term of two years or longer and the disparity appears to be widening over time.
The main advantage of the sliding scale prepayment penalty structure is that the penalties are simplistic, easy for most people to understand and, unlike some of the prepayment penalty schemes we will describe later, can be calculated with a minimum of arithmetic.
And that's not a major sacrifice these days: the interest rate and terms available in today's market are often so much better then when the existing loan was made, that the "payback" period for the prepayment penalty is often less then two years.
6%) of which can prepay provided a flat percentage prepayment penalty or yield maintenance is paid.
Although the original loan had six years remaining to maturity, the alignment of the short-term and long-term treasury rates made prepaying the loan very beneficial to the borrower despite the large prepayment penalty," said Fisher.
Exclusive of a $20,000 prepayment penalty this voluntary payment will result in annual interest expense savings of approximately $110,000, the mandatory repayment will result in annual interest expense saving of approximately $120,000, for an aggregate interest expense savings of $330,000.
98% and featured a 30-year amortization schedule and step-down prepayment penalty structure.
The loan was structured as a fixed rate forward commitment both to mitigate an onerous prepayment penalty with the former lender while locking in a favorable fourteen year fixed rate term.
Early extinguishment of the subordinated notes incurred a prepayment penalty of $1,300,000 and the company will write off $991,000 of non- cash deferred financing costs.
The loan was structured as a fixed rate forward commitment, both to mitigate an onerous prepayment penalty with the former lender and to lock in a favorable 14-year fixed rate term.
8) million, the result of a prepayment penalty for the refinancing of the company's senior notes, Caraustar reported a net loss of ($3.