The right given to a borrower to pay all or part of the debt prior to its maturity. Example: You have a 30-year mortgage. If you have a prepayment privilege, you can make additional principal payments on a regular basis in order to pay off your loan in less than the 30-year period.
Allows borrowers to make extra payments on the principal balance without penalty.
The right given a purchaser to pay all or part of a debt prior to its maturity without penalty.
A privilege granted to the mortgagor allowing the mortgage to be paid off prior to its full term... read full article
The right given to a purchaser to pay all or part of a debt prior to its maturity. The mortgagee does not have to accept any payment other than those originally agreed to.
the right given to a borrower to pay of all or part of a mortgage debt before it is due.
When you negotiate a closed mortgage, you are entering into an agreement with the lender that you will not pay off the mortgage during the term. In return the lender agrees to maintain the same interest rate throughout the term. However, most mortgages allow certain prepayment privileges such as an annual prepayment of a certain percentage of the mortgage amount. Or an annual increase in the mortgage payment. An open mortgage will usually cost more but allows you to repay the mortgage in full or in part at any time without penalty. See also Closed Mortgage and Prepayment Penalty.
The privilege of paying part or all of a loan in advance of a contracted due date.
The right of the borrower to pay out all or part of the outstanding principal before it comes due.
The right given a borrower in the mortgage to pay all or part of a mortgage debt without penalty prior to its maturity.
The right given to a purchaser to pay all or part of a debt prior to its maturity. The mortgage cannot be compelled to accept any payment other than those originally agreed to.
The right to repay periodically more than the scheduled principal payment. Historically this was limited to a single annual payment on the anniversary date of no more than 10% of the original principal. In recent years, however, prepayment privileges have become more lenient, reflecting peoples' desire to pay their mortgages off on an accelerated basis. See also Double Up.
A provision in a note or bond that gives the borrower the right to make payments in excess of the required payments.
The right to pay all or part of a mortgage loan in advance of the required payment date. While a standard mortgage does not permit any prepayment, most lenders will allow a borrower to prepay a portion, typically 10% or 15% of the principal, once in each year. They may also allow a similar increase in the monthly payment once in each year.
The right of a borrower to retire a loan before maturity.
The right of the borrower to prepay the entire principal sum remaining on the loan without penalty.
A mortgage feature that allows the borrower to prepay a portion or all of the principal balance with or without penalty. This privilege is frequently restricted to specific amounts and times.
The right of the debtor to pay off part or all of the debt without penalty prior to maturity, such as in a mortgage or agreement of sale.
The right of a borrower to pay off all or part of the outstanding principal before the maturity date, without incurring a penalty. back