Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.


Paying what is owed before it is due (usually to save interest charges).
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


1. The payment of a debt in full before it is due. Prepayment is good for the borrower because it relieves him/her of the debt, but it deprives the lender of interest he/she would have received otherwise. As a result, some lenders attach prepayment penalties to loans to disincentivize prepayments. Prepayment can me a major risk to collateralized mortgage obligations as coupon payments are based on interest received from the underlying mortgages. Less commonly, this is called anticipation. See also: Prepayment risk.

2. Payment in advance for a good or service not yet received.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in classic literature ?
I thought to myself indolently, "If I say No, she will only return to the subject again, and she will end (after all I owe to her kindness) in making me say Yes." Before I could answer her she had realized my anticipations. She returned to the subject; and she made me say Yes.
Unfortunately for these sanguine anticipations, before Mr.
ENPNewswire-August 7, 2019--KBRA Assigns K1+ to State of Texas Tax and Revenue Anticipation Notes, Series 2019
Investment manager, BlackRock Inc (NYSE: BLK), is said to be upgrading its European assets in anticipation of policy shifts in the European markets.
In anticipation that pressures will continue to mount, investors should buy Facebook stock while selling put options that expire in a month, with strike prices no more than 10% below the stock price, the author contends, adding that this is a way to cost-effectively build a position in anticipation that Facebook ultimately will be broken up by government regulators.
BASRA / NINA /- Security forces in Basra have taken precautionary measures in anticipation of the demonstrations, which will begin on Thursday.
And whether anticipation of exercise altered people's planned food intake.
"Now for the fifth trial, I must see you two master Anticipation. You must work together to see the movements leading up to a jump.
'Over a decade of anticipation will finally wrap up into an in sync nostalgic trip and glorious fresh era of gleaming stages as TVXQ embarks to Manila for their highly-requested show!' the concert promoter announced.
Poor anticipation, wrong positioning in the court, wild smashes and lack of cohesion were the prime reasons of Navy's defeat in the second semifinal against Army.
Summary: Shareholders of have been buying into the stock in anticipation of a dividend payout