Prepayment risk

The possibility that homeowners will pay off their Mortgage loans early, such as when Interest rates fall and they decide to refinance.

Related Terms: 9 ECI, Finance, FIN, Heir, Interest, Interest rate, Loan, Mortgage, Own

Other Related Pages: Category: Real_Estate Starting With: P

Additional Related Terms: Adjustable rate, Accrual of discount, Accrued interest, Amortization of premium, At par, All or any part, At best, At call, Adjustable rate preferred stock, All-risks coverage