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Prepayment speed

• Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities.

• A measure of how quickly principal is repaid to investors in mortgage securities.

 
 Embedded terms in definition
 Mortgage
Principal
Securities
Speed
 
 Related Terms
 Fha prepayment experience
Prepayment
Prepayment option
Prepayment penalty
Prepayment risk
Prepayment window
Psa prepayment
Speed
Zero prepayment assumption

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Tips for Trying to Fix a Clogged or "Frozen" Home Equity Line: For years, homeowners have turned to home equity lines of credit (HELOCs) as a way to borrow against their home's value to pay for college tuition, home improvements, medical bills and other major expenses. (A home's equity is the market value minus what is owed on the mortgage. If you owe $100,000 on your mortgage but your home is worth $250,000, your equity is $150,000.) More...

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