Paying off an entire mortgage before the scheduled date.

Pre-Payment refers to repaying the loan on a schedule faster than what is required in the promissory note. There are no penalties for pre-payment.

An advance payment made before related goods or services have been received. Sometimes pre-payments are made to take advantage of offers such as discounts or allowances.

A payment of any amount made to your loan in addition to your regular scheduled instalment. A pre-payment reduces the outstanding balance by the amount of the pre-payment.

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. In each case, prepayment means payment occurs before the loan has been fully amortized.

A privilege in a mortgage permitting the borrower to make payments in advance of their due date.

Any amount paid so as to reduce the principal before the due date.

Payment of a debt prior to maturity.

Repaying part of your mortgage ahead of schedule. Depending on your mortgage agreement, there may be a penalty for pre-paying.

Paying on principal, or paying above the minimum payment required by the lender. In the beginning years of the loan, the minimum payment is usually all interest. Anything added to that payment would go to paying off the principal. The more the borrower prepays, the shorter the term of the loan will be. Be sure to check if there are any Prepayment Penalties.