Finance
A Mississippi lender charges a 'prepayment penalty' on a mortgage. This means the borrower:
AReceives a discount for paying off the loan early
BMust pay a fee if they pay off the loan before the specified period✓ Correct
CCannot refinance their loan
DMust prepay one month's interest at closing
Explanation
A prepayment penalty is a fee charged by some lenders if the borrower pays off the loan—typically through refinancing or sale—before a specified period. Federal law restricts prepayment penalties on certain qualified mortgages.
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