Examples of prepay in a Sentence
Special orders must be prepaid.
Recent Examples of prepay from the Web
They must be ordered prepaid at a cost of $300 and will be delivered to your home or business.
Other accounts of Denny’s asking Black patrons to prepay for their meals were documented in a 1991 court case and a 2014 lawsuit involving a Los Angeles location.
Visa prepaid debit cards, each loaded up with $1,500.
Before long, the assailant’s prepaid cellphone was found on Jones, sitting in a parked car on Minnesota Avenue in Northeast Washington, as were the phones stolen from the victims, police said.
The Portland Marathon has met the City of Portland's deadline to prepay the estimated costs of police and transportation services for the 2017 marathon, bringing it one step closer to obtaining a permit for the 46th annual marathon, set for October.
Reservations accepted, and the Sunday brunch will be a ticketed service, prepaid via beachsidebrunch.com.
Councilman O’Neill, who also is on the city Finance Committee, said this isn’t like prepaying a mortgage.
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.
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
PREPAY Defined for Kids
Seen and Heard
What made you want to look up prepay? Please tell us where you read or heard it (including the quote, if possible).