One E. Broward Blvd. Suite 1503 Ft. Lauderdale, FL 33301
110 E Atlantic Avenue Delray Beach, FL  33444
Pre-Payment Penalties(Home)

Payment of mortgage loan, or part of it, before due date. Mortgage
agreements often restrict the right of prepayment either by limiting the
amount that can be prepaid in any one year or charging a penalty for
prepayment. Lenders who impose prepayment penalties will charge
borrowers a fee if they wish to repay part or all of their loan in advance of
the regular schedule.
Banks normally impose these penalties to cover the cost of financing or to
ensure they have met a reasonable income for their services.
Most pre-payment penalties do not exceed 3 years.