What is a prepayment penalty, and how does someone know if they have a prepayment penalty condition on their loan?

A prepayment penalty is a clause in the mortgage contract that states the lender may assess a penalty if the borrower significantly pays down or pays off the mortgage before the term of the loan.

Sarah Klinefelter is a loan officer with AgChoice Farm Credit. AgChoice specializes in providing farm and country property loans and financial services to help our Adams and York county customers confidently reach their dreams. To learn more about AgChoice and our 104 years of experience, contact us at 717-792-2641 or visit AgChoice.com.

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