prepayment option

prepayment option

See prepayment clause.

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4 million USD facility, effective June 30, 2015, will bear interest at an annual fixed rate of 8%, is unsecured, includes a no-cost voluntary prepayment option, and matures on July 31, 2018.
The loan also provides a very favorable open prepayment option.
In addition, Fannie Mae recently enhanced their adjustable-rate mortgage (ARM) loans offering a variable rate/flexible prepayment option called Fannie Mae ARM 7-6.
We first isolate variables to capture the prepayment option.
But a prepayment option, bolstered by a recent IRS Private Letter Ruling, may be an attractive alternative to such plans--and avoid gift taxes altogether.
Accordingly, the prepayment option cost must be better reflected in current MSR multiples.
Arm's-length provisions can be negotiated so that the prepayment option benefits both parties.
Indeed, although prepayment may occur for extraneous reasons, such as job reassignment or change in family structure, it is the very availability of the prepayment option that makes it unlikely that default will occur for any reason other than that the cost of the mortgage now exceeds the fallen value of the borrower's property.
Since they were backed by residential mortgages that had a prepayment option, movements in interest rates caused changes in the speed of repayment.
The prepayment option also gives consumers the ability to control their costs.
The prepayment option is favorable to the homeowner.
Refinancing through Freddie Mac's Capped ARM program afforded the borrower supplemental financing flexibility for the construction of an additional 80 units on the vacant portion of the property with an attractive prepayment option and low initial rate.