1.   The instruments are a hedge against Decreases in mortgage servicing fees as borrowers prepay their mortgages when rates fall.

2.   The other kind of project likely to prepay its mortgage was the cushy upmarket property.

3.   Although the government guarantees both principal and interest payments on these mortgages, the government has no control over whether the borrowers prepay the mortgages.

4.   As for whether to withdraw cash from the bank to prepay the mortgage, any answer leads to other questions.

5.   Duration is not always exact because assumptions often need to be made when bonds can be called, mortgages prepaid or interest rates changed.

6.   Finally, by prepaying the mortgage, you would be steadily reducing the amount of the home mortgage interest deduction that can be claimed on your income taxes.

7.   For years, prepaying a mortgage by putting extra money toward principal each month seemed like sound financial advice for those who have extra cash.

8.   Further, by prepaying the mortgage, you are eating away at the amount of the interest deduction you can take on your tax returns.

9.   Given your youth and the excellent long-term prospects of your growing portfolio, I would favor continuing to build your taxable fund accounts, rather than prepaying the mortgage.

10.   In addition, as borrowers take advantage of low mortgage rates to refinance, prepaying existing mortgages, some lenders will have difficulty reinvesting the principal, Harting said.