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Prepayment option

• All mortgages contain a prepayment option. The prepayment option gives the mortgagor (i.e., the homeowner) the option to get out of the obligation of the mortgage by "prepaying all of the remaining principal on the mortgage. The mortgagor can exercise this option at any time during the life of the mortgage.

 
 

Follow this link for all the terms related to option.

 
 Embedded terms in definition
 Exercise
E
Mortgage
Mortgagor
Option
Out
Prepayment
Principal
Time
 
 Related Terms
 
Abandonment option
American option
American style option
Annuity form or option
Arbitrage free option pricing models
Asian option
Bargain purchase price option
Binary option
Binomial option pricing model
Black option model
Black scholes option model
Black scholes option pricing model
Butterfly option spread
Call an option
Call option
Compound option
Covered or hedge option strategies
Currency option
Delta hedge of an option
Delta of an option
Doubling option
Down and in option
Down and out option
Elasticity of an option
Embedded option
European option
European style option
Exercise or option price
Exercising the option
Explicit option
Fha prepayment experience
Foreign currency option
Futures option
Gamma of an option
Garmen kohlhagen option pricing model
Greenshoe option
Ho lee option model
Implicit option
In the money option
Index and option market
Index option
Intrinsic value of an option
Irrational call option
Liquid yield option note
Lookback option
Multi option financing facility
Naked option
Naked option position
Naked option strategies
Option
Option adjusted duration
Option adjusted spread
Option adjusted spread model
Option elasticity
Option models
Option not to deliver
Option premium
Option price
Option seller
Option trading strategies
Option type
Option writer
Out of the money option
Path dependent option
Postponement option
Prepayment
Prepayment penalty
Prepayment risk
Prepayment speed
Prepayment window
Psa prepayment
Put an option
Put option
Quality option
Rho of an option
Seller's option
Short option minimum charge
Split fee option
Stock index option
Stock option
Swap option
Tax deferral option
Tax timing option
Time value of an option
Timing option
Two state option pricing model
Virtual currency option
Wild card option
Yield curve option pricing models
Yield to call, option or event date
Zero prepayment assumption

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