Finance
A Kansas borrower is charged a prepayment penalty. This means:
AThey will pay less interest if they prepay the loan
BThey must pay a fee if they pay off the mortgage early✓ Correct
CTheir interest rate will increase if they miss a payment
DThey receive a discount for paying on time
Explanation
A prepayment penalty is a fee charged by some lenders if the borrower pays off the mortgage before a specified date, compensating the lender for lost interest income.
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