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Paying what is owed before it is due (usually to save interest charges).


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.
References in periodicals archive ?
If we compare the anticipation of EU, EBRD, IMF and WB, the highest growth rates are anticipated in Macedonia, Montenegro and Kosovo.
Table 27: Supplier Respondents' Anticipation of Demand for Packaging Materials in 2013, by Type and Level of Demand Change (%)
The topic is quite comprehensive and is out of scope of a single article to describe all the 8 levels of my 8-factor anticipation design.
The magistrate judge applied the because of test to determine whether the memos were created in anticipation of litigation.
In sustaining Yum's appeal, the Sixth Circuit followed Adlman II in defining documents prepared "in anticipation of litigation" as "prepared or obtained because of the prospect of litigation" and found that the work-product doctrine protected the two memoranda because the taxpayer established, based on surrounding facts and circumstances in addition to the substance of the documents themselves, that the documents were prepared in anticipation of litigation.
Anticipation of the new life and yet fear of the pain increases.
In a letter to Congress, the AICPA showed support for the concept of regulating all tax return preparers and refund anticipation loan providers, but also raised some public policy and drafting concerns about the registration proposal which passed the Senate in May.
In the Brookings Institution's 2002 study, researchers wrote that tax preparers who offer rapid anticipation loans "can significantly diminish the economic benefits of the EITC--both for low-income families and the communities in which they live.
The lawsuit alleged that Block engaged in a "clear and serious violation of duty" by not informing clients of kickback fees it received from its lender, Household Finance, with regard to refund anticipation loans sold by Block.
Merriam-Webster's Collegiate Dictionary(1998) defined anticipation as "the visualization of a future event or state" (p.
JONATHAN SHEPPARD has found a new way of doing things with his near-white seven-year-old With Anticipation - and it is producing results.