Home Loans
QWhat Is A Pre-payment Penalty And How Do I Know I Have One On My Loan?
AA prepayment penalty is an interest charge due from the borrower when the loan is paid off prior to the expiration of a time period defined in the loan contract or note. Pre-payment penalties are becoming more common as lenders offer discounted interest rates to borrowers in exchange for a more certain yield on the loan over the specified time period.