Look at you, so responsible.
Except… verify you dont get charged a prepayment penalty.
Now wait just a minute, you say.
Im paying the money back early early!
and my lender thanks me by charging me a fee?
Well, in some cases, yes.
That interest is how they make their money.
No Interest Til Almost 2027?
Balance Transfer = Credit Card Cheat Code
What Is a Loan Prepayment Penalty?
A prepayment penalty is a fee lenders charge if you pay off all or part of your loan early.
Most loans do not include a prepayment penalty.
So suppose you bought a house last year and then wanted to sell your home.
But again, check your mortgage agreement for your exact terms.
That block of lending is the one going to be most hit by this.
How Can You Find Out if Your Current Loan Has a Prepayment Penalty?
First, check your contract.
Review your contract or ask your lender what amount will trigger the penalty, Gallagher said.
Tiffany Wendeln Connors is a staff writer/editor at The Penny Hoarder.
Readher bio and other work here, then catch her on Twitter @TiffanyWendeln.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
