prepayment model

Definition

A mathematical model used to predict changes to trends in loan prepayments, based on changes in interest rates and other market factors. A prepayment model uses historical data on prepayments and market conditions to model the expected prepayment rate on a given loan.
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
prepayment clause prepayment penalty