Finance

A prepayment penalty on an Oklahoma mortgage loan is a charge imposed when:

AA borrower makes a late payment
BA borrower pays off the loan early✓ Correct
CA borrower refinances after 10 years
DA borrower misses two consecutive payments

Explanation

A prepayment penalty is a fee charged by some lenders when a borrower pays off the loan balance before a specified date or makes extra principal payments. Prepayment penalties are regulated and disclosed under TILA.

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