No Good Deed Goes Unpunished
On the other hand, many borrowers are shocked to discover that they’ve been punished for paying more than their designated monthly installments or paying off the entire balance before the final due date. That’s because many lenders assess stiff prepayment penalties. That’s right – a penalty for attempting to settle your debt early.
You may be thinking that such fees don’t make sense. And you’re right.
But for lenders that charge prepayment fees – they make perfect sense. After all, by paying your loan off early, you reduce the amount of interest you’re charged, thereby … Read full article..