Mortgages Analyzed
Mortgages Analyzed
Mortgages Analyzed
 
Full Prepayment

What is Full Prepayment?

Definition
Full prepayment refers to the payment made prior to the end of the loan term that will completely pay off the entire loan obligation.
What It Means
Full prepayment occurs when the entire balance of the loan is paid prior to the due date. For example, a payment in the seventh year that will completely pay off the 30 year loan is a full prepayment. Full prepayment can occur as a result of the sale of the property, a refinance of the existing mortgage loan, or a full loan payoff.
Category
Finance
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Related Terms

  • Partial Prepayment: Partial prepayment refers to the amounts paid over and above the required monthly payment that are applied towards principal balance, but are not larg... Read More
  • Prepayment: Prepayment refers to the amounts paid over and above the required monthly payment that are applied towards principal balance.... Read More
  • Amortization: Amortization is the process of establishing equal periodic payments such that the payments will pay off the entire principal and interest by the end o... Read More
  • Loan Term: Loan term is the time period within which the borrower has to repay the loan amount and interest and satisfy all the terms of the agreement.... Read More
  • Payoff Amount: Payoff amount is the amount required to pay off the entire loan obligation as of a particular date. It includes amounts such as unpaid principal balan... Read More
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