Conditional Prepayment Rate

Conditional prepayment rate is an annualized estimate of the rate at which mortgage principal is expected to prepay.

Why this matters to income investors

The assumed prepayment pace affects expected mortgage income and security value.

How to use conditional prepayment rate in your research

Read the underlying loan and security disclosures. Check repayment speed, credit losses, financing, and payment priority because each can change the cash income available to investors.

This material is general education and information, not individualized investment, tax, or legal advice.