Finance
A West Virginia buyer's loan has a prepayment penalty. This means the buyer:
ACannot pay off the loan early under any circumstances
BMay be charged a fee for paying off the loan before the scheduled term✓ Correct
CMust pay a penalty if monthly payments are late
DIs required to pay two extra months at closing
Explanation
A prepayment penalty is a fee charged by the lender if the borrower pays off the loan before a specified period. Buyers should be aware of prepayment penalties when negotiating loan terms.
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