Examples of prepay in a Sentence
Special orders must be prepaid.
Recent Examples of prepay from the Web
Reservations accepted, and the Sunday brunch will be a ticketed service, prepaid via beachsidebrunch.com.
Motorists who cross the three tolled Ohio River bridges can now get RiverLink prepaid transponder kits at most Speedway stores in Kentucky and Indiana.
But under Wilson’s command the city has come up with a two-pronged plan to prepay the city’s liabilities.
Councilman O’Neill, who also is on the city Finance Committee, said this isn’t like prepaying a mortgage.
Sprint relaunched its struggling Virgin Mobile USA prepaid wireless brand with an iPhone-only offer.
Former longtime Gaston County commissioner and funeral director David Ward Jr. pleaded guilty to seven felonies this week for taking money customers had prepaid for services at his Gastonia funeral home and spending it on himself.
About two years ago, the lottery was taken to task after an audit found officials had, at the end of fiscal 2015, improperly prepaid $20 million for covering costs associated with the Powerball and Mega Millions games.
Photographer Lance Mercer shot Pearl Jam’s first publicity photos in the basement, and when the band moved out with the rent prepaid, Mercer set up shop there, developing photos and rehearsing with his own band, The Briefs.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'prepay.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of prepay
Financial Definition of PREPAY
What It Is
Prepayment occurs when a borrower pays off a loan earlier than expected.
How It Works
For example, let's say that John Doe borrows $300,000 to buy a house in Phoenix. The loan is a 30-year mortgage at 5% interest. John lives in the house for five years and makes his payments on time every month. However, in year six, he gets a job offer in Philadelphia and decides to move there. Accordingly, he sells his house. At the closing, the buyer gives John $500,000 for his house. John uses $250,000 to pay off the remaining balance on the loan instead of making 25 more years of payments. John has prepaid the loan.
Why It Matters
When a borrower prepays a loan, the borrower saves a lot of interest. But that means the lender also misses out on all that interest. Accordingly, prepayment can sometimes come with a penalty, and this is disclosed in the loan documents.
People who invest in pass-through securities are also frequently concerned about prepayment. That's because those securities that receive payments from an intermediary that collects payments from a pool of assets. The most famous of these is mortgage-backed securities (MBS), which represent an interest in a pool of mortgage loans.
When people move, as we’ve seen, they sell their houses, payoff their mortgages with the proceeds, and buy new houses with new mortgages. When interest rates fall, many homeowners refinance their mortgages, meaning they obtain new, lower-rate mortgages and pay off their higher-rate mortgages with the proceeds. This means the lenders and the MBS investors miss out on interest income due to prepayment.
PREPAY Defined for English Language Learners
Definition of prepay for English Language Learners
: to pay for (something) before you receive or use it
: to pay (something) before you are required to pay it
PREPAY Defined for Kids
Definition of prepay for Students
: to pay or pay for beforehand prepay the bill
Legal Definition of prepay
: to pay or pay the charge on in advance (as of date due or maturity date) no penalty for prepaying your student loan
Seen and Heard
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