Redemption penalty overhang

 

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Redemption penalty overhang

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 penalty overhang

Similar Matches

Redemption

Redemption

The process of canceling a defeasable title to land, such as is created by a mortgage foreclosure or tax sale.


Overhanging redemption penalty

Overhanging 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

Redemption

This is the right of the mortgagor to recover mortgaged property on repayment of the loan and any interest due. This legally means that once you as the borrower have finished repaying the mortgage you took out, the property is yours and the lender has no further claim on it. If you pay of the mortgage ahead of schedule you may face a redemption penalty which compensates the lender for loss of interest.


Redemption price

Redemption price

The price at which a bond or preferred stock can be redeemed by the issuer.


Redemption

Redemption

Repayment of a debt security or preferred stock issue, at or before maturity, at par or at a premium price.


Further Suggestions

redemption
Redemption cushion
Redemption charge
redemption yield
redemption date
Redemption fee
redemption fees
Redemption date
gross redemption yield
Redemption Period
Redemption penalties
right of redemption
Mandatory redemption schedule
Preferred equity redemption stock (PERC)
Redemption statement
Extended redemption penalty
Serial redemption
Right of redemption
Redemption price


 
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