Examples of prepay in a Sentence
Special orders must be prepaid.
Recent Examples of prepay from the Web
The reimbursements included expenses for travel costs, which more than once were prepaid on Sanchez-Macias’ personal American Express card.
The airport has launched an online service in which customers can prepay for a parking space — and possibly save up to 50 percent on the usual drive-up cost.
Tim Speiss, Partner-in-Charge of EisnerAmper’s Personal Wealth Advisors Group, on how New Yorkers can prepay their property taxes early, according to Governor Cuomo’s plan.
The state of Florida’s prepaid toll program, SunPass, will get a system upgrade from 7 p.m. Tuesday until 9 a.m. June 11, a period when customer accounts will be unavailable.
The city has reported about $9 million in cost savings, mainly through prepaying the unfunded pension liability, having a reduced workers' compensation rate and enacting a new fee schedule throughout the city.
Canada’s Ontario Human Rights Tribunal has ordered a popular Chinese restaurant to pay a black customer $10,000 for forcing the man and his friends to prepay for their meals in 2014, reports say.
One question likely to come up in future meetings: the idea of prepaying postage for ballots.
The New York Times reported that the restaurant was accused of discriminatory practices, such as segregating black people or requiring black customers to prepay for their meal.
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.
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
legal Definition of prepay
- no penalty for prepaying your student loan
Seen and Heard
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