Where would I find a prepayment penalty clause on a loan?

Answer by  rainbow (96)

Any provisions for prepayment penalties would be included in the note or mortgage that secures your loan. It is very important to read these documents closely, as these penalties can be significant. You must contractually agree to these terms. There are some federal and many state provisions that prohibit or limit these penalties.

Answer by  gleverance (720)

It varies by contract, there is no set place. Many contracts have it set right after the payment terms. You can always ask an attorney to review it with you.

Answer by  PGR (74)

It would be in one of the loan documents. Look for it first in the Note, then in the Loan Agreement. Usually the word "penalty" will not be used. Look for "rate equalization". If you want to a short cut, ask the lender for an official pay-off letter where the muust disclose principal, interest and penalty due.

Answer by  jackson (75)

loan repayment penalty clause can be found where the bearer has defaulted the repayments or has seized keeping in touch with the render incase of delays in payments of the loan in question.

Answer by  sellinghousesforyouyahoocom (48)

The prepayment clause should be located in the additional terms and conditions section of your loan contract or in the terms section that includes your payment and interest schedule.

Answer by  withluck (1745)

A clause concerning prepayment would be found on the original loan documents. If you no longer have the original documentation, then contact the lender and ask. They will look it up on their records and will tell you. You can request a copy of the paperwork for your records as well.