Prepayment Rate Financial Glossary

What is it? A representation that reflects the rate at which prepayments are received or forecasted to be received for a mortgage loan, a pool of mortgage loans, or an MBS. May be expressed as a PSA or CPR speed.

Finance Term Definition Added By: Sophie

Send To Friends!

If you'd like to send the Prepayment Rate 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 Rate. If you need any more information on this term, please don't hesitate to contact us.

Other Similar Finance Terms:

Financial Term equity value at risk (EVAR) is A less-commonly used synonym for value at risk. The quantity by which the assumed market value, or portfolio value, of an institutions equity is projected to decline in the event of an adverse change in prevailing interest rates. One measure of an institutions exposure to adverse consequences from changes in prevailing interest rates.

Financial Term Mortgagee is The party lending the money and receiving the mortgage. Some state treat the mortgagee as the legal owner, entitled to rents from the property. Other states treat the mortgagee as a secured creditor, the mortgagor being the owner. The latter is the more modern and accepted view.

Financial Term Loan is When a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the borrowed money, along with interest, at a predetermined date in the future.

Financial Term Bond Factor is Bond factors relate to pass-through securities that have had part of their principal repaid prior to maturity. The bond factor is the proportion of the principal that is yet to be repaid. Eg a bond factor of 0.85 means 85% of principal is yet to be repaid

Financial Term Assignment is A transfer to another of any property, real or personal, or of any rights or estates in said property.