Finance
Pre-payment penalties on mortgages in North Carolina:
AAre required by NCREC on all fixed-rate loans
BAre prohibited on certain loan types and must be disclosed if applicable✓ Correct
CAre standard and unavoidable on all FHA loans
DAutomatically apply for the first 5 years of any loan
Explanation
FHA and VA loans prohibit prepayment penalties. On conventional loans, prepayment penalties must be disclosed.
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