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Redemption |
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RedemptionThe process of canceling a defeasable title to land, such as is created by a mortgage foreclosure or tax sale.RedemptionThis 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.RedemptionThe re-purchase of a security, such as a bond or preferred stock, by the issuing company at or before maturity.RedemptionRepayment of a debt security or preferred stock issue, at or before maturity, at par or at a premium price.Redemption Similar MatchesExtended redemption penaltyExtended redemption penaltyThis 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 penaltiesRedemption penaltiesCharges paid to the lender in compensation for lost interest if you redeem your mortgage ahead of schedule. During a discount period you will be severely penalised if you try to switch to another product or mortgage provider. Penalties can be stepped just like discounts, and can be particularly severe within the first year. This is to ensure that the costs that the lender endures in setting up the mortgage are always covered. Penalties can be a fixed sum of money, though are often proportion of the loan. With cashback mortgages, you often have to repay the amount of money you received as cashback. Redemption penalty overhangRedemption 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. Right of redemptionRight of redemptionThe right to recover property forfeited by foreclosure by paying the outstanding principal owed plus interest. Redemption feeRedemption feeA fee some mutual funds charge when an investor sells shares within a specified short period of time. Further SuggestionsRedemption statementMandatory redemption schedule Preferred equity redemption stock (PERC) redemption fees Redemption charge Overhanging redemption penalty redemption yield Redemption price redemption price Redemption date Right of redemption gross redemption yield redemption date Redemption cushion Redemption Period Serial redemption |
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