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prepayment risk

The possibility that homeowners will pay off their mortgage loans early, such as when interest rates fall and they decide to refinance.

Related information about prepayment risk:
  1. Prepayment Risk Definition | Investopedia
    The risk associated with the early unscheduled return of principal on a fixed- income security. Some fixed-income securities, such as mortgage-backed securities, ...
     
  2. The Prepayment Risk of Mortgage-backed Securities
    The Prepayment Risk of. Mortgage-backed Securities. By Sean Becketti. Since their creation in 1970, mortgage pass- through securities have played an ...
     
  3. Prepayment of loan - Wikipedia, the free encyclopedia
    The fact that MBS-holders are exposed to downside prepayment risk, but rarely benefit from it, means that these bonds must pay a slightly higher interest rate ...
     
  4. Prepayment - Wikipedia, the free encyclopedia
    Prepayment may refer to: Prepayment for service, e.g. phone calls; Prepayment of loan, repaying a loan ahead of schedule; Deferred expense in accounting ...
     
  5. Prepayment risk - Financial Dictionary - The Free Dictionary
    The risk that a borrower will repay a loan before its maturity, depriving the lender of future interest payments. Prepayment risk is most important for callable ...
     
  6. Prepayment Risk in Adjustable Rate Mortgages Subject to Initial Year
    In addition, we find that teased ARMs bear prepayment risk related to ... rate mortgages, we find that loan age has a negative effect on prepayment risk for ARMS ...
     
  7. What is prepayment risk? definition and meaning
    Definition of prepayment risk: The possibility that homeowners will pay off their mortgage loans early, such as when interest rates fall and they decide to ...
     
  8. What Is Prepayment Risk?
    Brief and Straightforward Guide: What Is Prepayment Risk?