FINANCE
Early Loan Payoffs Can Trigger Hidden Fees
Understanding the prepayment penalty clause.
Why This Fee Exists
Lenders use it to recover projected interest income lost from an early loan closure. It has two common forms.
The Two Penalty Types
A 'hard' penalty applies to any early payoff. A 'soft' penalty only applies if you refinance the loan.
Find No-Penalty Loan Options
The full guide compares top online lenders that allow early payoffs without charging these fees.
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