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Editorial Policy & Integrity PactA prepayment penalty is a fee charged by a lender if you pay off your loan before the end of its official term.
Lenders use this to guarantee they earn a certain amount of interest. Our matching protocol prioritizes lenders that do NOT charge prepayment penalties, granting you full financial freedom.
Yes, but they are heavily regulated. Many states have banned them for certain consumer loans, and top-tier financial networks have largely abandoned the practice.
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