Prepayment Estimate
What is it? A reasonable and supportable forecast of loan prepayments. In the case of a mortgage-backed security, it is the forecast of principal amortization caused by loan prepayments. A single prepayment estimate is associated with each projected interest rate environment. Estimates are used to forecast expected lives. Investors typically examine data for a range of prepayment estimates applicable to a range of preselected rate changes.Added By: Victoria
The Prepayment Estimate definition has been viewed 255 Time(s)!
Send To Friends!
If you'd like to send the Prepayment Estimate definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Prepayment Estimate. If you need any more information on this term, please don't hesitate to contact us.