HomeDefinitionsCompareDebt Zero prepayment assumptionThe financial definition for Zero prepayment assumption:The assumption of payment of scheduled principal and interest with no payments. 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 penaltyPrepayment penaltyA fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. Further SuggestionsPrepayment speedPrepayments Click to compare definitions of Zero prepayment assumption Click to view definitions beginning ze |