paydown factor

Definition

The portion of cash that is subtracted monthly from the principal amount on a mortgage security divided by the original principal of that mortgage security. It is required that issuers of mortgage securities provide this paydown factor each month to the GNMA as it can be used to determine the total repayments of principal that are made to the security for certain time periods.

Use paydown factor in a sentence

You should try and figure out how to make the paydown factor work in the best interests of your company.

​ Was this Helpful? YES  NO 11 people found this helpful.

The paydown factor was not very important to our overall success and it was paid monthly, which was okay for us.

​ Was this Helpful? YES  NO 5 people found this helpful.

The paydown factor was communicated to the homeowner who quickly signed the promissory note and deed without fully understanding the loan.

​ Was this Helpful? YES  NO 11 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
paydown paydown magic