To Yield or not to Yield?

Prepayment Penalty Choices in the Era of Rising Interest Rates

Most commercial mortgages, particularly fixed-rate mortgages, have some sort of prepayment penalty. Lenders impose such a penalty to earn back some, or all, of the interest income they would have earned had the mortgage remained outstanding for its entire term.

Prepayment penalties generally come in one of three flavors: Read More about To Yield or not to Yield?