A fee that a borrower may be required to pay to the lender, in the early years of a mortgage loan, for repaying the loan in full or pre-paying a substantial amount to reduce the unpaid principle balance.
DFWCityhomes / Prepayment Penalty
A fee that a borrower may be required to pay to the lender, in the early years of a mortgage loan, for repaying the loan in full or pre-paying a substantial amount to reduce the unpaid principle balance.