A clause in some loans allowing the borrower to pay off the debt prior to its due date without incurring a penalty. This is an advantage for a borrower when interest rates are falling, since he/she can pay off the existing loan and then refinance at a more favorable rate. also called prior redemption privilege.
Related information about prepayment privilege:
- Prepayment Privilege Definition | Investopedia
The right given to a debt holder to pay all or part of a debt prior to its maturity or ahead of schedule, usually without risk of penalty. Prepayment privileges are ...
- What is prepayment privilege? definition and meaning
Definition of prepayment privilege: A clause in some loans allowing the borrower to pay off the debt prior to its due date without incurring a penalty. This is an ...
- prepayment privilege - Financial Dictionary - The Free Dictionary
The right of a borrower to repay a debt in full before it is due. The prepayment privilege is favorable to the borrower because it relieves him/her of the debt, but it ...
- Prepayment penalty - The Free Dictionary
Prepayment of Premiums · prepayment option · Prepayment penalties · Prepayment penalties · Prepayment penalties. Prepayment penalty. prepayment privilege ...
- ORS 86.150 - Loan agreements and promissory notes to state ...
Loan agreements and promissory notes to state maximum prepayment privilege penalty. (1) Any person making a loan having a loan period of more than three ...
- Payment of insurance premiums or charges; prepayment privilege.
Apr 1, 2012 ... (a) Payment of periodic insurance premiums or charges. Except with respect to mortgages for which a one-time mortgage insurance premium is ...
- Prepayment Privilege.
What does the term prepayment privilege mean, and description of its types.
- privilege - Dictionary, translation, definition - Reverso
suspension of banking privilege. n. interdiction bancaire. prepayment privilege. n. droit de paiement anticipé. pre payment privilege. n. droit de paiement anticipé ...