Question of the day

A prepayment penalty in a trust deed means:

loan

(A) The buyer is penalized for paying the loan prior to maturity
(B) The buyer may not accept money before the due date
(C) The lender will accept money before the due date
(D) The penalty would apply to an FHA loan

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Answer:  (A) A prepayment penalty means that the buyer would be penalized for paying the loan balance prior to the due date.