Finance
In Tennessee, a 'prepayment penalty' in a mortgage is:
AA fee required for all mortgage payments
BA charge imposed by the lender if the borrower pays off the loan early✓ Correct
CThe penalty for missing a scheduled payment
DA fee for paying more than the required monthly amount
Explanation
A prepayment penalty is a fee charged by the lender if the borrower pays off the loan before a specified period. Many Tennessee mortgages no longer include prepayment penalties.
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