Finance
In Hawaii, which of the following is a 'prepayment penalty' on a mortgage?
AA. A fee charged when the borrower misses a payment
BB. A fee charged by the lender when the borrower pays off the loan early✓ Correct
CC. A penalty for applying for too many loans
DD. A charge for paying the monthly payment on time
Explanation
A prepayment penalty is a fee charged when a borrower pays off their mortgage before the scheduled term, compensating the lender for lost interest income.
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