Prepayment
Definition of "Prepayment"
A payment made by the borrower over and above the scheduled mortgage payment. If the additional payment pays off the entire balance it is a prepayment in full; otherwise, it is a partial prepayment.
Popular Mortgage Terms
The maximum allowable decrease in the interest rate on an ARM each time rate is adjusted. It is usually one or two percentage points. ...
A home built entirely in a factory, transported to a site, and installed there. Manufactured homes are distinguished from 'modular,' 'panelized'' and 'pre-cut' homes. Manufactured houses ...
Loan applications that are withdrawn by borrowers, because they have found a better deal or for other reasons. ...
Equations used to derive common measures used in the mortgage market, such as monthly payment, balance, and APR. ...
Interest that is earned but not paid, adding to the amount owed. For example, if the monthly interest due on a loan is $600 and the borrower pays only $500, $100 is added to the amount owed ...
A plan purporting to protect FHA homebuyers against property defects. ...
A rate lock, plus an option to reduce the rate if market interest rates decline during the lock period. ...
The period you must retain a mortgage in order for it to be profitable to pay points to reduce the rate. ...
The period used to calculate the monthly mortgage payment. The term is usually but not always the same as the maturity, which is the period over which the loan balance must be paid in ...
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