Lending Basics
Prepayment Penalty
A fee charged by some lenders when a borrower repays a loan ahead of schedule. Prepayment penalties protect lenders from losing expected interest income and are more common in longer-term commercial loans.
Lending Basics
A fee charged by some lenders when a borrower repays a loan ahead of schedule. Prepayment penalties protect lenders from losing expected interest income and are more common in longer-term commercial loans.