prepayment privilege

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Prepayment Privilege

The right of a borrower to repay a debt in full before it is due. The prepayment privilege is favorable to the borrower because it relieves him/her of the debt, but it deprives the lender of interest that he/she would have received otherwise. However, some lenders offer the prepayment privilege to encourage potential borrowers to borrow from them instead of their competitors.

prepayment privilege

See prepayment clause.

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All RBC mortgages come with amortisations of up to 30 years and full prepayment privileges.
Once Austin's water use grows by a certain amount, prepayment privileges will expire and Austin will need to start paying the LCRA, which manages water in the Highland Lakes, a fair amount for the water.