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Break even payment rate |
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Break even payment rateThe prepayment rate of an MBS coupon that will produce the same cash flow yield (CFY) as that of a predetermined benchmark MBS coupon. Used to identify for coupons higher than the benchmark coupon the prepayment rate that will produce the same cash flow yield (CFY) as that of the benchmark coupon; and for coupons lower than the benchmark coupon the lowest prepayment rate that will do so.Break even payment rate Similar MatchesDiscount paymentDiscount paymentThe difference between the face value and the price paid for a security. Early repayment periodEarly repayment periodA period of time that applies to certain types of loan during which a charge will be made if the loan is repaid in full or in part or its terms are varied at the borrower's request. Payment defaultPayment defaultThis results when you are unable or simply unwilling to meet your mortgage repayments. If you default on your payments, the lender is ultimately entitled to sell your home in order to recover the loan. Different lenders will have different policies on how long they give you before they start the legal proceedings to recover the loan. Many will have a separate schedule of charges which you will incur before they start proceedings. Payment shockPayment shockPayment shocks are when the discount period ends and the monthly repayments jump by a large amount to match the Standard Variable Rate. You must be sure that you can budget for this in your monthly expenses. Payment CapPayment CapA maximum amount for a payment under an Adjustable Mortgage Loan, regardless of the increase in the interest rate. If the payment is less than the interest alone, negative amortization is created. Further SuggestionsGraduated paymentGraduated Payment Mortgage graduated payment mortgage Balance of payments deficit Stop payment Overpayment FHA prepayment experience Single payment bond Monthly repayment Additional principal payment Payment gateway Clearing House Interbank Payments System (CHIPS) Balloon payment Repayment plan Prepayment penalty Payment of balance Deferred payment annuity maintenance payments Payment date Lag response of prepayments periodic payment plan Balance of payments argument for protection prepayment fee Break even lease payment Late payment |
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