Prepayment speed 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 securities. Prepayment Speed In mortgage-backed securities, the estimated rate at which mortgage borrowers will pay off the mortgages Learn how to say Prepayments with EmmaSaying free pronunciation tutorials. Learn how to say Prepayments with EmmaSaying free pronunciation tutorials. Definition and meaning can be found here Dec 23, 2010 · 5 Basic Things To Know About Bonds. Investopedia Tutorial: Bond Basics. 1. Basic Bond Characteristics. Prepayment Risk. Here is what you will learn in this tutorial: 1. What is an interest-only mortgage? 2. For what types of borrowers is it suitable? 3. What are the hazards you should watch out for? 4. How much more does an IO cost? 5. What information do you need to assess an IO mortgage? 6. How do you get this information? 7. How do you keep track of pay-off Investopedia will send you emails related to Investopedia products and services. If you do not want these messages, please check this box. By proceeding you agree to the terms and privacy policy . A prepayment is a payment that you make before you receive goods or services, or before a debt is due. If a borrower makes prepayments , the loan balance declines more rapidly than would otherwise be possible. Investopedia.com - Your Source For Investing Education. This tutorial can be found at: www.investopedia.com/university/technicalanalysis/default.asp The terms of the prepayment penalty vary significantly, so it's important to read through your mortgage paperwork. Typically you will see terms such as "prepayment penalty disclosure" or "prepayment disclosure," after which the specifics of the prepayment penalty are usually listed. The PSA Prepayment Model is a prepayment scale developed by the Public Securities Association in 1985 for analyzing American mortgage-backed securities. The PSA mo