Finance
An Arizona borrower who has a mortgage with a 'prepayment penalty' will be charged an additional fee if they:
AMake payments late
BPay off the loan before a specified date✓ Correct
CRefinance within 12 months
DMiss more than 2 payments
Explanation
A prepayment penalty is a fee charged to borrowers who pay off their mortgage balance early—within a specified period. The Dodd-Frank Act limits prepayment penalties on qualified mortgages (QMs) to 3 years.
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