Interest on a loan that is paid before it is actually incurred.
Prepayment
Payment of a debt before it's due.
Prepayment clause
Clause in a mortgage that gives a mortgagor (borrower) the privilege of paying the mortgage indebtedness before it becomes due. Often, there is a penalty for prepayment.
Prepayment fee
Charge, often required by the terms of a mortgage, that is assessed on the remaining principal when an obligation is paid off before its full term.
Prepayment penalty
A consideration paid to the mortgagee for the prepayment privilege. Also known as reinvestment fee. This may or may not be regulated by state law.
Prepayment privilege
The right given to a borrower to pay of all or part of a mortgage debt before it is due.
Prepayment terms
Provision of credit that apply when a loan is paid.
Prequalification
The first stage of a mortgage application where the lender will run a basic credit report and determine your debt to income ratio in order to see how much mortgage you qualify for.
Presale
Sale of proposed properties before construction is completed.
Prescribed burning
Controlled application of fire to wildland fuels in either their natural or modified state, under specified environmental conditions, which allows the fire to be confined to a predetermined area, and to produce the fire behavior and fire characteristics required to attain planned fire treatment and resource management objectives.
