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

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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.


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