Full or partial
payment of all or part of the principal of
the outstanding
mortgage amount, which is separate and
above of the minimum required mortgage
payment.
Most mortgage
contacts will included a prepayment clause
which will gives the mortgagor the
privileges of paying the mortgage debt in
advance of the maturity date based on
stipulated terms, when not in default.
Prepayment
Clause Example
This mortgage shall
contain a clause permitting the mortgagor,
when not in default, the privilege of
prepaying the whole or any part of the
principal sum outstanding on any payment
date or dates without notice or penalty.
Prepayment of a
mortgage is a privilege and not an
obligation or a right.
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