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Paying off a loan early sounds like a financial win, but sometimes it comes with a price. A prepayment penalty is a fee lenders charge when a borrower pays off a loan before the agreed-upon term. While it may feel counterintuitive, the reasoning is simple: lenders structure loans expecting a certain return over time. #wordoftheday #legaltips #loan
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Paying off a loan early sounds like a financial win, but sometimes it comes with a price. A prepayment penalty is a fee lenders charge when a borrower pays off a loan before the agreed-upon term. While it may feel counterintuitive, the reasoning is simple: lenders structure loans expecting a certain return over time. #wordoftheday #legaltips #loan
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