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Payment shock |
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Payment 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 shock Similar MatchesBalance of payments equilibriumBalance of payments equilibriumMeaningful only under a pegged exchange rate, this referred to equality of credits and debits in the balance of payments using the traditional definition of the capital account. A surplus or deficit implied changing official reserves, so that something would ultimately have to change. PrepaymentsPrepaymentsPayments made in excess of scheduled mortgage principal repayments. Clearing House Automated Payments System (CHAPS)Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds that began operations in 1984. It includes 14 member banks, nearly 450 participating banks, and is one of the clearing companies within the structure of the Association for Payment Clearing Services (APACS). Break even payment rateBreak 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. Payment in kind (PIK) bondPayment in kind (PIK) bondA bond that gives the issuer an option (during an initial period) either to make coupon payments in cash or in the form of additional bonds. Further SuggestionsStop paymentPrepayment penalty Method of payment Date of payment Balance of payments adjustment mechanism Payments netting prepayment fee Graduated payment Discount payment clearing house automated payment system Facilitating payment Immediate payment annuity Additional principal payment Micropayment Balance of payments surplus balance of payments Periodic payment plan Early repayment period Payment Cap Overpayment Lag response of prepayments Zero prepayment assumption Balance of payments argument for protection Payment gateway Skip payment privilege |
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