Finance
A Wisconsin lender charges a prepayment penalty on a conventional mortgage. This means the borrower may be charged a fee for:
AMaking monthly payments late
BPaying off the loan balance before the scheduled maturity✓ Correct
CRefinancing only with a competing lender
DRequesting a loan modification
Explanation
A prepayment penalty is a fee charged by the lender if the borrower pays off the loan balance early (before the scheduled term ends), compensating the lender for lost interest income.
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