Finance
What is 'prepayment privilege' in a Rhode Island mortgage?
AThe right to skip a mortgage payment once per year
BThe borrower's right to pay off all or part of the mortgage balance early without penalty✓ Correct
CThe lender's right to increase the interest rate
DThe right to transfer the mortgage to another property
Explanation
Prepayment privilege allows a borrower to make additional principal payments or pay off the entire loan before maturity without incurring a prepayment penalty. Not all loans include this feature; some have prepayment penalties.
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