HomeDefinitionsCompareDebt Prepayment penaltyThe financial definition for Prepayment penalty:A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. Similar MatchesFHA prepayment experienceFHA prepayment experienceThe percentage of loans in a pool of mortgages outstanding at the origination anniversary, based on annual statistical historic survival rates for FHA-insured mortgages. Lag response of prepaymentsLag response of prepaymentsA delay of typically about three months between the time the weighted-average coupon of an MBS pool crosses the threshold for refinancing and observation of an acceleration in prepayment speed is observed. Prepayment speedPrepayment speedAlso called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. Further SuggestionsPrepaymentsZero prepayment assumption Click to compare definitions of Prepayment penalty Click to view definitions beginning pr |