What Are Prepayment Penalties?
Definition of "What are prepayment penalties?"
A penalty fee charged for paying off a mortgage early, thus allowing banks to still make money off of the loan in the event that you inherit a small fortune. Most loans these days do not have prepayment penalties - and if they do, they are only applicable for the first few years of the loan.
Popular Real Estate Questions
Popular Real Estate Glossary Terms
See concrete block. ...
Valuation method for land or improvements to property. It takes into account gross rentals less operating expenses. ...
The term compounding refers to the process of gaining interest on interest. While usually, interest is credited to the existing principal amount, compounding makes it possible to credit ...
A society of real estate professionals providing a counseling service on real estate purchase and investment decisions through a negotiated fee rather than charging a commission. ...
Sewer system built into the streets of a neighborhood that is capable of accommodating the excess water flow of a heavy storm without backing up or flooding. ...
Interest computations based only on the original principal. For example, the simple interest on a $100,000, 8% loan is $8,000. It is compared with compound interest which is applied to the ...
Distance from the location of natural ground and water to the actual ground level. ...
A real estate owner's policy and rules regarding the use of the property by the tenant. In insurance, a contract that provides coverage against given risks. Coverage limits for real ...
(1) The interest rate used to convert future receipts or payments in connection with real estate property to their present value. The cost of capital is used as the discount rate under the ...
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