What is a curtailment in relation to a mortgage? A. Payments that come in slower than expected. B. Prepayments of a mortgage for less than the full amount. C. Prepayments of a mortgage for the entire amount. D. A default on a mortgage.
Curtailments are payments on mortgages for less than the full amount. For example, if a mortgage balance is $100,000, and the borrower makes a prepayment of only $500, that payment would be a curtailment.
