Business / Taxes / Prepayment Penalty: Most lenders allow you to prepay the outstanding balance of a loan at any time without a fee, but some lenders charge a prepayment penalty, often about 2% of the amount you borrowed. If your loan agreement doesn’t have a prepayment clause, which excludes a fee for early termination, the penalty may apply. Many states prohibit prepayment fees, and they’re not allowed on any mortgage loans purchased by Fannie Mae or Freddie Mac. But they are allowed in other states, and lenders may offer a lower rate on loans with prepayment penalties because they are locking in their long-term profit. Similarly lenders who offer to waive closing costs and points when you refinance may impose a penalty if you pay off the loan within the first few years. But if you’re not planning to move, this refinancing deal could save you money.
Penalty Adjective Synonyms: punishment, discipline, penance, sentence, forfeit, fine, handicap, price, mulct, amercement, imprisonment, incarceration
Entertainment / Ice Hockey / Penalty Shootout: A method of deciding a winner, in amateur hockey, if the score is still tied after one overtime period. Each team designates five shooters and a goalie, and the teams alternate penalty shots, with a d MORE
Entertainment / Ice Hockey / Penalty Shot: A shot on goal, with only the goaltender defending, awarded for certain infractions. The player taking the shot is given the puck at the center ice spot and must keep the puck moving forward once acro MORE