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Partial Prepayments

On a conventional or amortizing loan (for example, DPAP or FARM)

A borrower may make an additional principal payment of any amount at any time by sending a check payable to Stanford University to Mortgage Receivables, 3145 Porter Drive, Palo Alto, CA 94304.  Please identify the loan for which you wish to apply this additional payment.  Your subsequent loan payments will not change but the loan will be paid off sooner.

On a loan with a deferred interest feature (for example, MAP or DIP)

A borrower may make a partial prepayment on a loan with a deferred interest feature at any time.  The following conditions must be met:

1. The amount of the prepayment is at least the minimum required amount.
2. The borrower notifies Faculty Staff Housing of this transaction.
3. For DIP loans, an appraisal meeting the conditions of the note is required.  For MAP loans, no appraisal is required as long as the borrower agrees to have the deferred interest calculated based on the note rate. An appraisal for the purpose of any prepayment must be ordered by Faculty Staff Housing.
4. If an appraisal is used to calculate the deferred interest, then a CPA letter specifying capital improvements completed may further reduce the deferred interest obligation and must be submitted by the borrower. See Adjustment Improvements document for more information.

The partial prepayment will be applied to both the principal and deferred interest due in the same portion as they are due.  Deferred interest due is calculated in the same manner as if the loan is being paid off. Subsequent monthly payments, if any, will be reduced.  For more information, please refer to your mortgage note or to the Mortgage Assistance Program or Deferred Interest Program documents.

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