The Real Estate Encyclopedia
Prepayment Risk
Category - Real Estate Glossary - Real Estate Terminology
The risk that a borrower will repay the remaining principal or an amount other than the scheduled payment on a mortgage prior to maturity, thus shortening the life of the loan. In order to reduce prepayment risk, commercial mortgages commonly have lockout periods and/or prepayment premiums or yield maintenance.


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Real Estate Glossary - Real Estate Terminology
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