Definitions for "Prepayment Privileges"
Most lenders allow you to increase your principal and interest payment by up to 20% once each calendar year. Under the second "20", you may prepay your mortgage, in minimum amounts of up to 20% of the original principal each calendar year. There is no additional interest or fee when you exercise either or both of the "20 + 20" privileges.
Voluntary payments that are in addition to regular mortgage payments.
Allows the borrower to make voluntary payments on the mortgage loan, in addition to the regular, scheduled mortgage payments.
The right given to a mortgagor to pay all or part debt to its maturity. Many options are available depending on the lender's policies.