the amount of money invested in a similar mortgage in the current market conditions that will produce the same return as one dollar does in the mortgage being prepaid the lender also stands to gain from the prepayment of a loan and reinvestment of the proceeds this way an offer to prepay 408 that the lender presents the identified borrower is advantageous for both sides in a preferred embodiment of the present invention the computation step 406 takes into account factors such as the remaining term of the loan the estimated level of the risk of default etc generally through the use of the appropriate model thus in this preferred embodiment of the present invention the mortgage prepayment is taking place through direct transaction between the borrower and the lender in another embodiment of the present invention an interested third party conducts the search 402 of the borrower who holds the mortgage that would fetch a price 404 in the secondary that is substantially below current outstanding loan balance 405 and who is willing to prepay the mortgage in full or in part upon finding such borrower and performing computation 406 of the amount this third party is prepared to accept from said borrower in satisfaction of 1 of the principal said third party performs acquisition 407 of the loan from the current lender for a price which is lower per 1 of the principal balance than the amount it will accept from the borrower the difference between the amount of prepayment and the price paid for acquisition of the loan represents the profit of the said third party in yet another embodiment of the present invention a financial institution may acquire a portfolio 403 of.