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Redemption penalty overhang |
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Redemption penalty overhangThis 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 MatchesGross redemption yieldGross redemption yieldSee 'redemption yield'. RedemptionRedemptionRepayment of a debt security or preferred stock issue, at or before maturity, at par or at a premium price. Right of redemptionRight of redemptionThe right to recover property forfeited by foreclosure by paying the outstanding principal owed plus interest. Redemption dateRedemption dateThe date on which a bond matures or is redeemed. RedemptionRedemptionThis 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. Further SuggestionsRedemption statementredemption redemption fees redemption yield Extended redemption penalty Redemption Period redemption price Redemption charge Redemption fee redemption date Right of redemption Mandatory redemption schedule Overhanging redemption penalty Serial redemption Redemption price Redemption cushion Preferred equity redemption stock (PERC) Redemption Redemption penalties |
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