Last reviewed 08-20-2026Short-Sale.com Editorialglossary
Prepayment Penalty
CFPB
Updated 08-20-2026
Prepayment Penalty
A prepayment penalty is a fee that some lenders charge if you pay off all or part of your mortgage early. If you have a prepayment penalty, you would have agreed to this when you closed on your home. Not all mortgages have a prepayment penalty.
CFPB Mortgage Terms
CFPB · p. 24
Need help?
Ask more questions about Prepayment Penalty in Help. You'll get answers for your situation.
People also ask