Yield maintenance and defeasance are two common methods used to compensate lenders for the loss of interest income on commercial loans. Both terms refer to prepayment penalties designed to preserve ...

Defeasance is now a common feature of real estate finance, allowing a borrower to effectively prepay a loan that is not by its terms prepayable. A defeasance is a substitution of a loan's real estate ...

Q. What are the types of prepayment penalty options I will encounter when financing a commercial property? A. A prepayment penalty is included in most commercial mortgage loans to assure the lender ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Anthony Battle is a CERTIFIED FINANCIAL PLANNER™ professional. He earned the Chartered ...

A defeasance clause in real estate is a provision in loan agreements that defines how a borrower can satisfy the lender's requirements in order to release their lien on the property. This clause can ...