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Yield Maintenance
The prepayment premium, which will equal the present day value of any costs to the lender resulting from the difference in interest rates between the date of the note and the date on which the prepayment is made. In other words, the borrower must pay the lender enough money so that the lender can theoretically replace the loan’s future cash flows using Treasury Securities.
MEECORP: The Streetwise Commercial Lender, Email: principal[at] meecorp.comAddress: 2115 Linwood Avenue - Suite 301- Fort Lee, New Jersey 07024

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