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Prepayment penalty clause

Prepayment penalty clause 2026

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The document is a Note Addendum outlining the prepayment penalty for borrowers who wish to repay their loan early. It specifies that if a borrower makes any prepayment within the first twelve months, a penalty of 5% of the prepaid principal will apply. The addendum replaces previous terms regarding the borrower's right to prepay and emphasizes that additional payments toward principal in the first year incur extra costs.

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Click ‘Get Form’ to open the prepayment penalty clause in the editor.
Begin by entering the property address in the designated field. This is crucial as it identifies the collateral for the loan.
Review the section titled 'BORROWER’S RIGHT TO PREPAY.' Ensure that you understand the terms, particularly regarding any penalties for early repayment within the first twelve months.
Fill in your name and date at the bottom of the form. This signifies your acknowledgment and agreement to the terms outlined in this addendum.
If applicable, consult with a financial advisor or accountant to clarify any complex calculations related to potential prepayment penalties before finalizing your document.

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