Prepayment Fees

Prepayment fees are charges that are assessed when a borrower makes a payment on a loan in excess of the required minimum payment. Prepayment fees are often imposed on loans with variable interest rates, and they are intended to compensate the lender for the lost interest that would have been earned if the loan had remained outstanding. Continue Reading Below

About Prepayment Fees

Prepayment fees are charges that are assessed when a borrower makes a payment on a loan in excess of the required minimum payment. Prepayment fees are often imposed on loans with variable interest rates, and they are intended to compensate the lender for the lost interest that would have been earned if the loan had remained outstanding. Prepayment fees can be a significant cost for borrowers who are trying to pay off their loans early, and they should be carefully considered before making an extra payment.