Fox Money, a personal finance hub, provides insights on mortgage prepayment penalties, which are fees charged by lenders for paying off a mortgage early. These penalties incentivize borrowers to keep loans longer, as lenders lose potential interest income. To avoid such penalties, borrowers should seek lenders that offer "zero prepayment penalties" and carefully review loan agreements. There are two types of penalties: soft, applicable only during refinancing, and hard, which can apply to both refinancing and selling the property. Understanding these terms is crucial for financial decisions.
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