Which one of the following is true about prepayment, Ask an Expert

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Which one of the following is TRUE about Prepayment penalties?

A) They are never used with residential mortgages

B) They lower the effective cost if the loan is repaid before maturity

C) They are equivalent to charging additional points for the loan

D) They are not included in the APR calculation

Justify your answer.

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Category:- Basic Finance
Reference No.:- M91146081

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