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Yield maintenance premium
Yield maintenance premium A penalty, paid by the borrower, designed to make investors whole in the event of early redemption of principal.
RELATED TERMS--------------------------------------
Borrower A person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms.
Redemption The process of paying off the mortgage at the end of the mortgage term.
Principal 1) The outstanding balance of a loan. 2) A party to a real estate transaction. 3) The head of a real estate firm.
SIMILAR TERMS--------------------------------------
Yield The interest earned by an investor on his investment (or bank on the money it has lent).
Yield curve A yield curve is a graph that shows the relationship between yields and maturity dates. Under normal circumstances, the longer it takes for a CD, bond or other investment to mature, the greater the yield, because people demand a greater return to tie up their money for a longer time.
Yield spread The difference in yields between a commercial mortgage and a benchmark value, typically U.S. Treasuries of the same maturity.
PREVIOUS AND NEXT TERMS--------------------------------------
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Yield The interest earned by an investor on his investment (or bank on the money it has lent).
Yield curve A yield curve is a graph that shows the relationship between yields and maturity dates. Under normal circumstances, the longer it takes for a CD, bond or other investment to mature, the greater the yield, because people demand a greater return to tie up their money for a longer time.
Yield maintenance premium
Yield spread The difference in yields between a commercial mortgage and a benchmark value, typically U.S. Treasuries of the same maturity.
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