Last reviewed 10-31-2026Short-Sale.com Editorialglossary

Prepayment Penalty Mortgage

FreddieMac

Updated 10-31-2026

Prepayment Penalty Mortgage

A Prepayment Penalty Mortgage is a Mortgage with respect to which the Borrower is, or at any time has been, obligated to pay a designated penalty in the event of certain prepayments of principal.

FreddieMac Glossary

FreddieMac · p. 33

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