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Glossary > P > "Prepayment fee" Definition

Prepayment fee

In the US, a fee charged to a borrower by a lender when a loan or mortgage is repaid ahead of schedule. In the UK, building societies impose a similar charge, typically binding the borrower to at least three years of repayments if such a charge is to be avoided.

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Prepayment fee - In the US, a fee charged to a borrower by a lender when a loan or mortgage is repaid ahead of schedule. In the UK, building societies impose a similar charge, typically binding the borrower to at least three years of repayments if such a charge is to be avoided.

Prepayment fee : in the us, a fee charged to a borrower by a lender when a loan or mortgage is repaid ahead of schedule. in the uk, building societies impose a similar charge, typically binding the borrower to at least three years of repayments if such a charge is to be avoided.