The average rate at which mortgage holders are expected to pay off their loans ahead of schedule. This is used in calculating the value of mortgage pass-though securities.
Related information about prepayment speed:
- Prepayment Speed - Financial Dictionary - The Free Dictionary
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 ...
- PSA prepayment speed - Invest Definition
PSA prepayment speed definition: A measure developed by the Bond Market Association that studies the rate of prepayment of mortgage loans. The model ...
- What is prepayment speed? definition and meaning
Definition of prepayment speed: The average rate at which mortgage holders are expected to pay off their loans ahead of schedule. This is used in calculating ...
- Dealer-Median Prepayment Speed Definition | Investopedia
The median value of all Wall Street securities dealers' prepayment speed estimates for the underlying mortgages used to form mortgage-backed securities.
- Prepayment Speed Assumptions (PSA) - Performance Trust University
A percentage expression of the relationship between the actual and expected constant prepayment rate (CPR) based on the PSA ramp. The ramp assumes ...
- Calculating Prepayment Speeds
Projected and historical prepayment rates are often expressed as “percentage of PSA” (Prepayment Speed Assumptions). (See Glossary for a more complete ...
- Prepayment Models
Absolute Prepayment Speed (ABS). This abbreviation (which, confusingly, is the same as that used for asset-backed securities) is commonly applied to ...
- What is PREPAYMENT SPEED? - The Law Dictionary
Definition of PREPAYMENT SPEED: The speed a mortgage can be paid ahead of schedule.