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Prepayment speed |
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Prepayment speedAlso called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities.Prepayment speed Similar MatchesPrepaymentsPrepaymentsPayments made in excess of scheduled mortgage principal repayments. Prepayment penaltyPrepayment penaltyA fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. Zero prepayment assumptionZero prepayment assumptionThe assumption of payment of scheduled principal and interest with no payments. Lag response of prepaymentsLag response of prepaymentsA delay of typically about three months between the time the weighted-average coupon of an MBS pool crosses the threshold for refinancing and observation of an acceleration in prepayment speed is observed. FHA prepayment experienceFHA prepayment experienceThe percentage of loans in a pool of mortgages outstanding at the origination anniversary, based on annual statistical historic survival rates for FHA-insured mortgages. Further Suggestionsprepayment feePrepayment penalty |
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