Sometimes referred to as Constant Prepayment Rate. Describes the percentage of the remaining loan balance which is expected to prepay (or has prepaid) above and beyond the scheduled amortization of principal. CPR assumes the unscheduled amount of principal repays at a rate of .2% in the first month, increasing by .2% each month for 30 months, at which point prepayments level off and stay constant at 6% (.2 x 30) CPR for the remainder of the life of the mortgage.
