prepayment risk Definition

prepayment risk

Definition

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

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com

Related Terms

interest rate risk - More

risk - More

Collateralized Mortgage Obligation - More

companion bonds

CMO

commercial mortgage-backed security

Popular 'Lending & Credit' Terms

equity
triple net lease
leverage
interest rate
amortization

security
accounts receivable
quick ratio
financial leverage
accounts payable

prepayment risk in the news

Tools

prepayment risk is ...

... part of the Lending & Credit and Real Estate subjects.

Nearby Terms

prepaid insurance
prepaid interest
prepayment
prepayment penalty
prepayment privilege
prepayment risk
prepayment speed
prequalification
prerefunding
preretirement survivor annuity
presale order

Search volume for prepayment risk

Review the unprecedented moves the Fed & Treasury took to bring the financial markets back from the precipice