prepayment

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prepayment

[-pā′mənt]
Etymology: L, prae + pacere, to pacify
the payment in advance for health care services by subscribers to a third-party insurance program.
References in periodicals archive ?
Prime borrowers who choose to accept a loan with a prepayment penalty tend to do so because it was presented with a lower interest rate.
With prepayment penalties, Freddie Mac notes on its Web site, a borrower should be given the choice of including a prepayment penalty and should never be required to do so.
The reason that is a relevant number is if those borrowers obtained a subprime loan with a prepayment penalty, they are locked into that higher rate loan for the term of the prepayment penalty, unless they want to pay the fee to refinance out of it.
That you're getting a lower interest rate in exchange for the prepayment penalty.
In the event that you have to sell your home or refinance, the prepayment penalty lees will be pulled directly out of the equity in your home.
For example, a $1 million one year interest only mortgage with a rate of 12% might have guaranteed interest prepayment penalty of six months.
A guaranteed interest prepayment penalty, combined with an interest reserve is fantastic racket.
625 percent and a 10-year term, The special feature of this loan was that although the client had a prohibitive yield maintenance penalty on the existing loan, Meridian was able to convince the lender to keep the loan in its portfolio, be flexible on the prepayment penalty, and deliver a very low rate to the client.
The prepayment penalty on the permanent loan will be of a sliding scale nature and the lender charged a one percent fee for both the construction and permanent financing combined.
The prepayment penalty on the permanent loan will be of a flexible, sliding scale nature and the lender charged a 1 percent fee for both the construction and permanent financing combined.
80% for the first 10 years, and are callable after five years with no prepayment penalty.
1 billion, which entitles NovaStar to excess and prepayment penalty fee cash flow from the underlying loan collateral and serves as overcollateralization.