Prepaying
/ˌpriːˈpeɪɪŋ/
Definitions
- (v. (gerund)) The act of paying a debt or obligation before its due date, often to reduce interest costs or to satisfy contractual terms.
The borrower is prepaying the mortgage to save on interest expenses.
Forms
- prepay
- prepaid
Related terms
See also
Commentary
Prepaying commonly arises in loan and mortgage contexts where timing of payment affects interest calculations or contractual rights.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.