Prepayment Penalty

A fee that a borrower may be required to pay to the lenderThe lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing...., in the early years of a mortgageA loan using your home as collateral. In some states, the term mortgage is also used to describe the document you sign (to grant the lender a lien on your home). It also may be used to indicate the amount of money you borrow, with interest, to purchase your house. The amount of your mortgage often is the purchase price... loan, for repaying the loan in full or pre-paying a substantial amount to reduce the unpaid principle balance.