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


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.
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 IRS filed a petition in district court to enforce the summons as it related to the two opinion letters, arguing that the documents were not created in anticipation of litigation, so the work-product privilege did not apply.
Yum objected to the magistrate's findings and provided the court with additional affidavits to support its position that the documents were prepared in anticipation of litigation.
Le present article tente de repondre a deux questions : le choix des electeurs qui votent par anticipation est-il representatif de celui de l'ensemble de l'electorat canadien au moment oo il est exprime?
It will thus reap the benefits of a partial sale, stabilize the asset's financial position in anticipation of the benefits associated with the next financial cycle and maintain control of the property (as well as the ability and incentive to increase value and economic upside).
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.