Borrowers may make extra payments on, or prepay entirely, their loans at any time without penalty. In the event of a prepayment of the entire unpaid balance (which includes interest, fees (if any), and principal) of a loan on which your Loan-Related Securities are dependent, you will receive your share of such prepayment, after the deduction of any charges due, as full satisfaction of your Loan-Related Securities.
As a result of this prepayment, you may not receive the full return you had anticipated and will have to redeploy this capital earlier than anticipated. If a borrower partially prepays a loan, you will receive your share of the prepayment amount the trust receives, after the deduction of any charges due, and the outstanding principal will then be automatically reduced by the prepaid amount in excess of the payment and fees. The borrower's monthly payment remains unchanged. With the reduced principal amount and the unchanged monthly payment, the loan will be paid in full earlier than the initial stated term of the loan, effectively reducing its term.
Our award-winning customer care team is here for you.