Gross redemption yield
Gross redemption yieldSee 'redemption yield'.
Right of redemptionRight of redemption
The right to recover property that has been attached by paying off the debt .
Overhanging redemption penaltyOverhanging redemption penalty
An early redemption charge that lasts beyond the benefit period is referred to as an extended or overhanging redemption penalty. These should be avoided where possible.
Redemption penaltiesRedemption penalties
Charges paid to the lender in compensation for lost interest if you redeem your mortgage ahead of schedule. During a discount period you will be severely penalised if you try to switch to another product or mortgage provider. Penalties can be stepped just like discounts, and can be particularly severe within the first year. This is to ensure that the costs that the lender endures in setting up the mortgage are always covered. Penalties can be a fixed sum of money, though are often proportion of the loan. With cashback mortgages, you often have to repay the amount of money you received as cashback.
Extended redemption penaltyExtended redemption penalty
This is where the redemption penalty continues beyond a fixed or capped rate period, effectively tying you in to the much higher variable rate for a period of time after the fixed or capped period. As a result you get stuck paying an uncompetitive rate that eats into the gains you may have made from having the fixed rate or capped ratein the first place.
Redemption PeriodRedemption Period
A time period during which a mortgage, landcontract, deed of trust, etc., can be redeemed. Usually set by statute, and after judicial foreclosure.
Further SuggestionsRedemption fee
right of redemption
Preferred equity redemption stock (PERC)
Redemption penalty overhang
Mandatory redemption schedule