Definition
A prepayment provision requiring the borrower to compensate the lender for lost interest.
Example
Yield maintenance made early payoff economically unattractive until the open window.
Related terms
Frequently asked questions
What does Yield Maintenance mean in real estate?
A prepayment provision requiring the borrower to compensate the lender for lost interest.
How is Yield Maintenance used in practice?
Yield maintenance made early payoff economically unattractive until the open window.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.