Definition of "Prepayment privilege"

Cynthia Tant, PhD real estate agent

Written by

Cynthia Tant, PhDelite badge icon

Gulf Coast Home Experts, LLC

Clause in a mortgage that allows the borrower to pay more than the monthly amount and to retire the loan early without a penalty.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Also called biannual; twice a year. An example is when lease payments are due January 1 and July 1. ...

List of dwelling units, such as homes. ...

Net return rate earned on an equity investment in real estate after deducing any interest costs and taxes. ...

Individual having permission to act ob behalf of a bank or other financial institution in a specified locality to attract interest borrowers. ...

Geographic location that is gradually being developed as an urban area. ...

People often ask themselves, what does interim mean? By definition, interim means a break or pause in a particular activity. As an adjective, interim means a temporary, provisional, or ...

Pledge of personal property, e.g., furniture, as collateral for a note. If the debt is not paid, the holder of the mortgage will receive the mortgaged property. See also mortgage. ...

Charges incurred in making a sale of real estate such as real estate commissions and attorney fees. ...

Right to property depends on some occurrence. ...

Popular Real Estate Questions