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Yield maintenance
A prepayment premium that allows investors to attain the same yield as if the borrower made all scheduled mortgage payments until maturity. Yield maintenance premiums are designed to make investors indifferent to prepayments and to make refinancing unattractive and uneconomical to borrowers.
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- Part of Speech: noun
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- Industry/Domain: Real estate
- Category: General
- Company: Coldwell Banker
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