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

Molding used in corners simulating a quarter of a circle. ...

Point at which a housing development becomes a neighborhood. After an initial housing development is sold and the new owners become established, the neighborhood stage begins. The ...

The right and duties of using and holding property. ...

Something that is illegal. An example is an unenforceable debt because it has exceeded the statute of limitations. ...

Thinking about selling your own home without an agent? You can. For Sale By Owner or FSBO is how it’s called in the real estate world. It's when a homeowner decides to sell his/her ...

Optional feature included in some homeowners insurance policies that pays the replacement cost of any personal property. ...

A clause that may be inserted into a purchase agreement or a lease indicating that subject property must be properly maintained in order to validate the contract. The effect is to create ...

Legal rule, principle, or tenet. ...

Contractual clause freeing a party from personal liability. Foe example, an exculpatory clause in a mortgage agreement provides a mortgagor the ability to surrender a mortgage property in ...

Popular Real Estate Questions