Personal Finance
Money Management

If a loan has a prepayment penalty attatched to it would it still be viable to retire it?

User Avatar
Wiki User
March 28, 2005 4:22PM

It would depend on whether the savings gained by "retiring" the

loan outweighed the disadvantages posed by the pre-payment penalty.

Most loans have pre-payment penalties which expire after a short

period of time. On mortgage loans, the typical pre-payment penalty

runs 1, 3, or 5 years.

Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.