Prepayment speed

 

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Prepayment speed

Also 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 Matches

Prepayment penalty

Prepayment penalty

A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity.


Lag response of prepayments

Lag response of prepayments

A 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 experience

FHA prepayment experience

The percentage of loans in a pool of mortgages outstanding at the origination anniversary, based on annual statistical historic survival rates for FHA-insured mortgages.


Zero prepayment assumption

Zero prepayment assumption

The assumption of payment of scheduled principal and interest with no payments.


Prepayment fee

Prepayment fee

In the US, a fee charged to a borrower by a lender when a loan or mortgage is repaid ahead of schedule. In the UK, building societies impose a similar charge, typically binding the borrower to at least three years of repayments if such a charge is to be avoided.


Further Suggestions

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