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everybody Catholic subrahmanyam over it are these schools welcome to your real estate tip of the week now todays tip of the week is a vocabulary term called a lock-in clause and this is not possible on residential loans residential loans actually arent allowed to have these clauses but you might see these on some commercial transactions so you might have heard of on a residential property something called a prepayment penalty and a prepayment penalty is where the bank will actually charge the borrower a penalty for paying off their loan early I know that sounds crazy that you think the bank would have want their money back quickly right just to make sure youre not going to default but actually on some residential loans banks put these prepayment penalties where if you pay it off too early you pay a penalty the lock-in clause is a clause that sometimes found on commercial loans that basically prohibits an early payoff of the loan so if you have a loan with a lock-in clause in it you