A type of prepayment fee that is based on the movement of interest rates. The fee is charged by the lender to the borrower, and the borrower pays the fee in the hope that the mortgage-backed investment will provide a higher yield. The yield maintenance formula is the present value of remaining payments multiplied by the difference between the bond interest rate and the rate on a Treasury note of the same duration. It is often used in the commercial mortgage market in the valuation of securities.
Related information about yield maintenance:
- Yield Maintenance Definition | Investopedia
A prepayment premium that allows investors to attain the same yield as if the borrower made all scheduled mortgage payments until maturity.
- Yield-maintenance Prepayment Penalty | Winter & Company
Yield maintenance is a prepayment penalty explained in this page.
- CMBS Prepayment Terms - Wikipedia, the free encyclopedia
1 Defeasance; 2 Yield Maintenance; 3 Mathematically Explained; 4 External links ... Yield maintenance is an actual payoff of the loan made up of two parts: the ...
- Defeasance Vs. Yield Maintenance
No standardization of yield maintenance language ... Often less costly than yield maintenance, particularly if the yield maintenance calculation is performed ...
- Defeasance vs. Yield Maintenance - Chatham Financial
Comparing Yield Maintenance and Defeasance Alternatives… by Regan Campbell ... yield maintenance or defeasance will be the most economical choice for ...
- Multifamily MBS Update: Yield Maintenance Using the ... - Fannie Mae
with a yield maintenance prepayment premium payable by the borrower. For all new ... Conforms with the industry standard for yield maintenance calculations ...
- Example of Yield Maintenance Calculation in ... - Fannie Mae
Example of Yield Maintenance Calculation. Exhibit V-3 In Connection With A Full Prepayment. EXAMPLE OF YIELD MAINTENANCE CALCULATION ...
- What is yield maintenance? definition and meaning
Definition of yield maintenance: A type of prepayment fee that is based on the movement of interest rates. The fee is charged by the lender to the borrower, and ...