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Dictionary

Words, grammatical forms and meanings linked to the ontology.

prepayment penalty en · NOUN

Meanings

  1. An additional fee charged for paying off part of or the entirety of a loan ahead of the scheduled due date in order to compensate for the loss of interest income suffered by the creditor in such case.
    • Prepayment penalties can be viewed as a necessary supplement to the escalating-payments feature: If borrowers prepay before the end of the low-rate introductory period and thus avoid the high post-reset rates, then the escalating-payments feature becomes moot. 2012, Oren Bar-Gill, Seduction by Contract:

Forms

SpellingFeaturesLabelsSource
prepayment penalties Number=Plur lexicographic
pre-payment penalty alternative lexicographic

Translations (2)

pl kara za przedpłatę (fee charged for prepayment of a loan) · de Vorfälligkeitsentschädigung (fee charged for prepayment of a loan)