Prepayment
By Pinyo • Mar 3rd, 2008 • Category: PPrepayment is the act of fully or partially paying off the outstanding balance of a loan at any point during the term of the loan at a time earlier than set out in the contract.
Typically, the purpose of prepayment is to reduce the amount of interest that must otherwise be paid. Depending on your loan agreement, prepayment may be subjected to prepayment penalty.






