"Repayment penalties" refer to additional fees or charges imposed by a lender if a borrower pays off a loan or debt earlier than the agreed-upon timeframe. It discourages borrowers from repaying their debt early and compensates the lender for potential loss of interest earnings.
Full definition
Synonyms for individual words can be found below.
«repayment»
«penalties»
Phrases with «repayment penalties»
Sentences with «repayment penalties»
- If you find a loan with a lower rate, consider other factors like early repayment penalties. (lendedu.com)
- Reverse mortgages can be paid back, but there are sometimes repayment penalties that the homeowner should look into before acquiring the mortgage. (nowitcounts.com)
- However, mortgage refinancing may come with closing costs such as mortgage repayment penalty, mortgage discharge fee and legal fees. (myfinancekits.com)
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