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Yield Maintenance |
Also found in: Acronyms | 0.03 sec. |
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Yield Maintenance A prepayment premium that allows investors to attain the same yield as if the borrower made all scheduled mortgage payments until maturity. Notes: Yield maintenance premiums are designed to make investors indifferent to prepayment. Furthermore, It also makes refinancing unattractive and uneconomical to borrowers. |
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Yield Maintenance
