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Simple English definitions for legal terms

prepayment penalty

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A quick definition of prepayment penalty:

Prepayment penalty: When you borrow money to buy a house, sometimes the bank will make you pay extra money if you want to pay back the loan early. This is called a prepayment penalty. The bank does this to make sure they don't lose out on the interest they would have earned if you had kept paying them for the full amount of time. The penalty can be a certain percentage of what you still owe, or it can be a certain number of months' worth of interest.

A more thorough explanation:

A prepayment penalty is a clause in a mortgage contract that requires the borrower to pay a fee if they pay off the loan early, usually within the first five years. This penalty is designed to protect the lender from losing out on interest income that they would have earned if the loan had not been prepaid.

For example, let's say you take out a mortgage for $200,000 with a prepayment penalty clause. If you decide to pay off the entire loan after only three years, you may be required to pay a penalty fee of several thousand dollars. This fee could be calculated as a percentage of the remaining mortgage debt or as a fixed number of months' interest.

Another example would be if you have a car loan with a prepayment penalty clause. If you decide to pay off the loan early, you may be required to pay a fee that is a percentage of the remaining balance or a fixed amount of interest.

In summary, a prepayment penalty is a fee that borrowers may be required to pay if they pay off a loan early. This penalty is designed to protect the lender from losing out on interest income.

Preparer Taxpayer Identification Number (PTIN) | Preponderance

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19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
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