Finance
In Vermont, which of the following is a common trigger for a prepayment penalty on a mortgage?
APaying more than the required monthly payment
BPaying off the full loan balance significantly before the scheduled payoff date✓ Correct
CMaking payments late more than three times
DRefinancing within the first year after origination
Explanation
Prepayment penalties are fees charged when a borrower pays off their loan significantly ahead of schedule. Not all Vermont mortgages have prepayment penalties, but when they exist, they are triggered by early payoff of the outstanding balance.
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