Posts tagged Home Loan Prepayment Penalty
What is the Prepayment Penalty on a Mortgage?

There are clauses in mortgage contracts that stipulate penalties for repaying the loan too fast. That's right, you could get charged extra for paying back what you owe ahead of schedule. This can include paying off the loan through refinancing, or selling the home. Of course, the fee charged must clearly be stated in the loan agreement, as well as the period of time that prepayment fees may be applied. The details of the clause vary by lender, and not all mortgage agreements have prepayment penalty clauses.

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