Assessments.

Prepayment: A privilege in a mortgage permitting the borrower to make payments in advance of their due date. Prepayment Penalty: Money charged for an early repayment of debt. Prepayment penalties are allowed in some form (but not necessarily imposed) in many states. Primary Mortgage Market: Lenders, such as savings-and-loan associations, commercial banks and mortgage companies, who make mortgage loans directly to borrowers. These lenders sometimes sell their mortgages to the secondary mortgage markets. Principal: The loan amount borrowed or still owed.