8 March 2026
Prepayment Penalty
A prepayment penalty is a fee you pay to the lender if you repay or change your mortgage earlier than agreed. The lender charges this because they miss out on expected interest income.
A prepayment penalty is a fee you pay to the lender if you repay or change your mortgage earlier than agreed. The lender charges this because they miss out on expected interest income. The bank charges this fee because it is losing interest income.
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