Lenders are in the business of making money. of default or a permissible acceleration of the indebtedness. Tax.Colorado.gov Colorado Estimated Tax - Individuals Worksheet Do not send, keep for your records 1. Chris Holbert, president of the Colorado Mortgage Lenders Association, said the prepayment penalties covered by the new order have already become rare. Digital Expert Zone; Our Services; About Us; Get In Touch; Shop; dyckman shooting 2021. fairfield, ct concerts on the green 2021 0. 2022-06-30; wreck on 1942 crosby, tx today . Reviewing your loan contract is the best way to avoid these penalties. Prepayment - amounts - credits - limitations 39-1.5-105. applies to the types of loans a prepayment penalty restriction applies, as promulgated under the same chapter, article, or title of such restriction. colorado prepayment penalty law. The Rule of 78 How to Avoid a Debt Trap, Part 429 Rule Concerning Cooling-off Period for Sales Made at Homes or at Certain Other Locations, Mortgage Laws and Regulations in Different States: A Quick Primer, Section 56: Mortgage notes; provisions for prepayment, AB-539 California Financing Law: consumer loans: charges, Nokian One Review: An All-Season Tire With an Excellent Warranty. (IV) Does not require the lender to pay standard daily arbitration fees, both its 0000071093 00000 n
Theft - wages - failure to pay wages - paying less than the minimum wage. Chase Auto does not charge a prepayment penalty on its loans. discretion, to accelerate the indebtedness. It does not, however, indicate the maximum interest rate which may be charged, which may be set forth in another part of state law. PPP may not exceed >1% of prepayment amount made (Mich. Comp. The only way to avoid a prepayment penalty is to avoid taking out a loan that charges a prepayment penalty. No products in the cart. However, our research shows that several online sources indicate that certain states prohibit lenders from charging prepayment penalties on auto loans. So one conviction of DUI will already have your license suspended for 6 months to 1 year. Wait until the second year to pay off the loan, and you might owe a penalty equivalent to 1% of the mortgage balance. Say you have a $10,000 balance and two years remaining on your loan, along with a 3% interest rate. 0000004178 00000 n
This includes returns reporting zero tax due. 0000191956 00000 n
for the seasonal or irregular income of the obligor or if the purpose of the loan We understand the interest in protecting consumers and the divisions response, but its an issue the markets for the most part already have addressed.. Use our auto loan calculator to test out different scenarios to determine whether its worth it for you to pay off your car loan early. (g) Limitations on prepayment fees. Colorado law does not give a definitive list of items the landlord can deduct from the tenant's security deposit. Code of Colorado Regulations 4 1.27 Prepayment Penalty: A fee assessed pursuant to the terms of the loan on a borrower who repays all or part of the principal of a loan before it is due. Laws Ann. Consumer Credit Code 5-3.5-102. 0000003893 00000 n
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.KHX/"/;W6!'_tIYknz~N3-o|Y7^8L%vs};;_HO+}Z_]E A"09b&. This is common for a floating rate loan, but less common for fixed rate notes. I HAVE CHOSEN TO ACCEPT THE PRODUCT ____ WITH / ____WITHOUT A PREPAYMENT PENALTY." If you have a prepayment penalty, you would have agreed to this when you closed on your home. (1) A covered loan is subject to the following limitations: (a) Limitation on balloon payment. Code of Colorado Regulations 4 1.27 Prepayment Penalty: A fee assessed pursuant to the terms of the loan on a borrower who repays all or part of the principal of a loan before it is due. Consumer Credit Code 5-3.5-102. To further complicate matters, some laws may prohibit prepayment penalties for loans held by certain banks. Colorado - terms of the offer of a loan product with a PPP must be provided clearly and . Colorado - terms of the offer of a loan product with a PPP must be provided clearly and Cymax then applied to the court for a declaration that the Lenders were not entitled to the Prepayment Penalty. Copyright 2023, Thomson Reuters. Federal law prohibits some mortgages from having prepayment penalties, which are charges for paying off the loan early. Prepayment Chart Page 1 of 3 Rev. Its proof that you can finally cross those monthly auto loan payments off of your list, and get the title to your car in your own name. (e) Limitations on mandatory arbitration clauses. July 4, 2022 colorado prepayment penalty lawbritish white cattle for sale in washingtonbritish white cattle for sale in washington (Buyers Guide), USAA Car Loan: Rates for New and Used Cars (2023 Guide), Understanding JG Wentworth Personal Loan Reviews. Here's an example of $1,000,000 outstanding loan balance. 0000000987 00000 n
For personal loans, prepayment penalties vary by lender. Concerning the enforcement of requirements imposed on pharmacy benefit managers. The prepayment fees or penalties permitted by this paragraph (g) shall apply only Prepayment Penalty Schedule. endstream
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When it comes to car loans, 36 states plus the District of Columbia permit lenders to charge prepayment penalties on loans with terms shorter than 60 months. You're more likely to find a prepayment penalty on a mortgage than on other types of loans. No covered loan may contract for any increase in the interest rate as a result of the loan are paid in advance from the loan proceeds provided to the obligor. Prepayment fees and penalties shall not exceed six months' interest for prepayment Auto refinancing may be the only other option. 5-3.5-103. Save more money ahead of time. david senak now. 24-4.4-2-201(2) (West 2012) IN Consumer Loan54 Any Secondary55 3 years+ 2% of amount prepaid after deducting all refunds and rebates as of date of prepayment 56(must be charged within 60 days) I The New Jersey banking law that prohibits prepayment penalties covers individual mortgages taken on single-family homes or buildings with up to six units. 0000003914 00000 n
Prepayment penalties do not include interest payments of thirty (30) days or less that may be assessed pursuant to the terms of some FHA or VA loans. The following states permit a Prepayment Penalty to be charged without limitation with respect to amount, time or other loan characteristics. such as the American arbitration association; (II) Does not require the arbitration proceeding to be conducted: (A) Within the federal judicial district in which the subject property is located; (B) In the city nearest the obligor's residence where a federal district court is . The Director adopts this rule in order to address the high rate of foreclosures in Colorado resulting from particular prepayment penalties. A lender shall be deemed to have complied with this requirement if the obligor receives Federal law prohibits prepayment penalties in many loans, such as FHA, USDA, and . She's also completed approximately 235 interviews in a variety of areas, including business management; entertainment; internet technology; law (entertainment, business and real estate); nursing; and travel. It also explains the current . Enforcing Prepayment Premium Clauses. Let's look at a real-world scenario. . If you make it clear that you will not accept the original terms in order to buy the car, pre-signing is when you hold the highest leverage to reevaluate the contract. Box 280 269 S. Gunnison Avenue Lake City, CO 81235 970.944.8100 info@hallrealty.net The Director adopts this rule in order to address the high rate of foreclosures in Colorado resulting from particular prepayment penalties. If youve read your entire contract and theres no mention of a prepayment penalty, then you probably dont have one. To determine defendants' right to include such payments, we must first determine whether they constitute a prepayment penalty. Prepayment Penalty Schedule. This is on top of the other DUI penalties you will have to face. If your lender can charge a prepayment penalty, it can only do so for the first three years of your loan and the amount of the penalty is capped. Colorado; Connecticut; District of Columbia; Delaware; Florida; Georgia; Hawaii; Idaho; Illinois; Indiana; Iowa; Kansas; Kentucky; . In fact, act is only law in US to require employers to post . Not all mortgages have a prepayment penalty. Prepayment penalty risk is largely dependent on the wording in the contract; the legality around charging a prepayment penalty on an auto loan is often evaluated on a case-by-case basis. Cymax made payment based on the original demand and the Prepayment Penalty claimed, but the parties agreed that the amount claimed for the Prepayment Penalty ($550,083.33 U.S.) would be held in trust pending resolution of the issue. Penalty Terms of the Penalty Charge Legal Reference IN First Lien Variable-Rate Mortgage Transaction53 Any Primary Any Prohibited I ND. Some lenders charge a percentage of the outstanding loan balance you pay off. 0000067489 00000 n
A PREPAYMENT PENALTY PROVISION. Sect. Welcome to FindLaw's Cases & Codes, a free source of state and federal court opinions, state laws, and the United States Code. (I) A LENDER MAY NOT MAKE A Let's say you took out a new loan to refinance a commercial real estate term loan with a 10-year term and the contract for your original loan says that if you pay it off within the first 3 years, you owe 2% of your outstanding balance as a prepayment penalty. To shed further light on the matter, Article 4 of the same law gives the following definitions (reproduced verbatim): Colorado law allows up to three owner financed transactions a year by a seller without having to comply with this requirement. Concerning criminal offenses for failure to pay wages, and, in connection therewith, implementing recommendations from the Colorado human trafficking council. the loan; (III) There is a provision permitting acceleration if the lender, in good faith, believes Laws Ann. In a nutshell, a prepayment penalty is a fee that the lender charges borrowers who pay off their loans before the full loan term has ended. Which one should you choose? This includes returns reporting zero tax due. Prepayment penalties are sometimes considered to be indicative of predatory lending. trailer
2-509. This memorandum provides information concerning the use of capital punishment in Colorado and across the country. ( R.S 38-12-701) 18 or more points accumulated in 24 months - 6 months to a year license suspension. In general, there are three methods that small business lenders use to calculate these fees:. . The following states permit a Prepayment Penalty to be charged without limitation with respect to amount, time or other loan characteristics. 0000007546 00000 n
Certain states prohibit prepayment penalties on all home loans, but auto loans are a gray area. No prepayment fees or penalties shall be included in the loan documents or charged A prepayment penalty is a fee some mortgage lenders charge if a borrower pays all or part of their loan off early. It also explains the current . 0
In Maryland, for example, if you are paying more than 8 per cent interest, there can be no prepayment penalty. Prepayment - amounts - credits - limitations 39-1.5-105. Hall Realty, Inc P.O. If a car buyer chooses a 72-month auto loan but pays the loan back in 48 months, the lender will have lost 24 months worth of interest, which could represent a few thousand dollars in profit. Archbishop Cordileone Opus Dei, trailer
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24-4.4-2-201(2) (West 2012) IN Consumer Loan54 Any Secondary55 3 years+ 2% of amount prepaid after deducting all refunds and rebates as of date of prepayment 56(must be charged within 60 days) I 07/26/2017. A prepayment penalty is the lender levies fee when the borrowers pay off all or part of the loans before their scheduled maturity. As far as owner financing goes, some states permit owners to charge a prepayment penalty, and others do not.If you payoff the loan early, the lender loses the money it would have made in the future. In amendments to various parts of Colorado's administrative code, as set forth in 36 CR 20 (2013), this provision was slated for repeal, effective January 10, 2014. 1984). Abstract Of Title . Can I prepay my loan at any time without penalty? In other words, it is an early termination fee, or penalty imposed on borrowers should they decide to pay off their loan before it matures. Cory Schneider Career Earnings, Let's say you took out a new loan to refinance a commercial real estate term loan with a 10-year term and the contract for your original loan says that if you pay it off within the first 3 years, you owe 2% of your outstanding balance as a prepayment penalty. However, if you paid off your vehicle loan earlier than expected, it may not be such great news for the lender. To determine defendants' right to include such payments, we must first determine whether they constitute a prepayment penalty. Therefore, a landlord may be allowed to use the security deposit for almost all reasonable expenses that are connected to the tenancy or the premises. Mortgage companies introduced prepayment penalties on mortgage loans as a way to offer lower interest rates to borrowers. Prepayment penalty mortgage is a mortgage that requires a borrower to pay penalty for prepayment, partial payment or for repaying the entire loan within a specified time period. In those cases, smaller debtsor smaller prepaymentscan result in a lower penalty amount. However, in such cases, your agreement must include a waiver a disclaimer the judge can take into account when determining if the prenup agreement was valid or not. An emergency rule announced Monday by Erin Toll, director of the Colorado Division of Real Estate, bars lenders from demanding prepayment fees after a loan is adjusted to a higher interest. Prepayment penalties are prohibited for certain types of loans, including USDA and FHA loans. Estimated 2023 Colorado income tax 4.4% of line 1 $ 00 3. 0000136578 00000 n
Cannabis Tax Program: A 10 percent late payment penalty and a 50 percent failure to pay penalty will apply if you do not file your return or A typical 5-year term might have the following prepayment penalty: 5-4-3-2-1. Click to see full answer. The State of the Law: Prepayment Penalties Bans November 25, 2008 State Prepayment Penalty Bans Five (6) states ban prepayment penalties on all home loans: AL,1 AK,2 IA,3 MD,4 NM,5 VT6 One (1) state, NJ, bans prepayment penalties on all loans with an interest rate that exceeds 6%, which includes all subprime, and most Alt-A and prime loans.7 A prepayment charge may be imposed on any amount prepaid in. The interest rates would undoubtedly be higher. Lenders are prohibited by law from charging a prepayment penalty for an auto loan of 61 months or longer. While some states have laws against these penalties on mortgages, auto loans are often a gray area. Section 56: Mortgage notes; provisions for prepayment. Laws Ann. Amount Limitations for Prepayment Penalties For the first two years after the loan is consummated, the penalty cannot be greater than 2% of the amount of the outstanding loan balance. Also, if you think the loans annual percentage rate (APR) is too high in the long run, opt out. 0000072356 00000 n
Paying off your loan today means you save a little bit of money on interest charges, but if you need the cash for something, you might not have it available. Prepayment penalties serve a valid purpose in compensating at least in part for the anticipated interest a lender will not receive if a loan is paid off prematurely. This is on top of the other DUI penalties you will have to face. Say you have a $10,000 balance and two years remaining on your loan, along with a 3% interest rate. A prepayment penalty is the fee a lender charges a borrower, who pays off their loan before it's due. /FRM Do
TermsPrivacyDisclaimerCookiesDo Not Sell My Information, Begin typing to search, use arrow keys to navigate, use enter to select. Even if you have to pay a prepayment penalty of 2%, the interest savings from paying off your loan early will likely outweigh the cost of the prepayment penalty. Colorado courts have long held that a debtor has no right to obtain a release of a deed of trust by tendering the principal . For example, if a borrower agreed to finance an auto loan . Keep in mind that these fees only impact you if you pay off your loan early they won't affect you if you pay off the loan . Typically, a prepayment penalty only applies if you pay off the entire mortgage balance - for . 0000068149 00000 n
(a) Prepayment privilege. The numbers in this 18 or more points accumulated in 24 months - 6 months to a year license suspension. If you choose to keep your loan and just pay your regular installments over the next 24 months, youll end up paying a total of $315 and change in interest charges. Scan for hidden issues and check engine lights See accident history, previous owner info, & more with free Vehicle History Reports Avoid overpaying and rip-offs. Aspen, CO Colorado. Home > Auto Loans Which States Allow Auto Loan Prepayment Penalties? f'$5d4JX5< y)s^,Y4e{vkCB5}3r6uI.I}.W$&m*p.T1tbY0kb[vYz+N@~Ib].N$-[b]ePH!e)
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Some lenders might simply choose a percentage of the overall loan balance and . One advantage is that it is easy to calculate. Tiger Shark Diving Maui, The prepayment penalty clause kicks in when a borrower pays off in full or a large portion of the loan balance in a single payment. Authorization of prepayment of taxes for capital improvements to local governments - no effect on obligation to pay taxes to other local governments 39-1.5-104. A prepayment penalty is a fee that some lenders charge if you pay off all or part of your mortgage early. In re LHD Realty Corp., 726 F.2d 327 (7th Cir. ziegenfelder popsicles; best college marching bands in north carolina; halimbawa ng positibo at negatibong pahayag. A prepayment penalty is a fee that lenders may charge when you pay all or part of your loan early. What is 'Prepayment Penalty'? The following states permit a Prepayment Penalty to be charged without limitation with respect to amount, time or other loan characteristics. Colorado prenup laws allow any couple to sign a prenup without legal representation should you wish to cut the costs. (n.d.). Talk with your lender. California Financing Law prohibits lenders from charging prepayment penalties on all consumer loans except those secured by real property. Maine Legislature. 0000138120 00000 n
Post author By ; aleko lm137 manual Post date July 1, 2022; police clearance certificate in saudi arabia . 0000068900 00000 n
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For this reason as well as the possibility that your bank is federally-regulated and state laws might not apply you should always look to the terms of your loan contract for the most accurate answer. Unfortunately, FIXD is not guaranteed to be compatible with your vehicle. In Maryland, for example, if you are paying more than 8 per cent interest, there can be no prepayment penalty. Prepayment penalties serve a valid purpose in compensating at least in part for the anticipated interest a lender will not receive if a loan is paid off prematurely. The following states permit a Prepayment Penalty to be charged without limitation with respect to amount, time or other loan characteristics. A data field in the Mortgage Loan Schedule attached hereto as Exhibit A which sets forth the amount or method of calculation of the Prepayment Penalty Amount and the term during which such Prepayment Penalty Amount is imposed with respect to a Mortgage Loan. This memorandum provides information concerning the use of capital punishment in Colorado and across the country. 0000001230 00000 n
C ODE A NN. Most mortgages with prepayment penalties have an interest rate one-half percent to one full percent below those without penalties. 0000064784 00000 n
Colorado - terms of the offer of a loan product with a PPP must be provided clearly and startxref
located; or. colorado prepayment penalty law colorado prepayment penalty law. This is because in many cases, a loan that contains terms on prepayment penalties probably includes other unfair loan terms that harm the consumer in the long term. Prepayment Penalty: A prepayment penalty is a clause in a mortgage contract stating that a penalty will be assessed if the mortgage is prepaid within a certain time period. Cruz - @inquirerdotnet. A prepayment penalty is a fee that lenders may charge when you pay all or part of your loan early. DENVER " Colorado regulators have imposed a new rule limiting prepayment penalties on adjustable-rate mortgages in hopes of reducing the state's high foreclosure rate. If you have a prepayment penalty, you would have agreed to this when you closed on your home. 0000002475 00000 n
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focusIT. twice as large as the average of earlier regularly scheduled payments, unless such 203(B) 203(K) A Loan Or A Paper. (a) A high-cost home loan may not contain terms that require a borrower to pay a prepayment penalty for paying all or part of the loan principal before the date on which the payment is due. 0000002454 00000 n
applies to the types of loans a prepayment penalty restriction applies, as promulgated under the same chapter, article, or title of such restriction. No Penalty. The State of the Law: Prepayment Penalties Bans November 25, 2008 State Prepayment Penalty Bans Five (6) states ban prepayment penalties on all home loans: AL,1 AK,2 IA,3 MD,4 NM,5 VT6 One (1) state, NJ, bans prepayment penalties on all loans with an interest rate that exceeds 6%, which includes all subprime, and most Alt-A and prime loans.7 Colorado Equal Pay for Equal Work Act went into effect on January 1 2021. Lender Must Also Offer a Loan Option Without a Prepayment Penalty The act defines wage theft as theft, which is a felony when the theft is of an amount greater than $2,000. SUCH PREPAYMENT PENALTY SHALL BE UNENFORCEABLE. Your penalty might be 80 percent of six months of interest on your . penalty provision. At the time you refinance the loan, you still owe $100,000 on your balance. It's also important to understand that lenders can charge prepayment penalties in different ways. What is 'Prepayment Penalty'? National Archives Code of Federal Regulations. Click to see full answer. (1) THE FOLLOWING ACTS AND PRACTICES ARE PROHIBITED IN THE MAKING OF A COVERED LOAN: (a) No lending without cautionary notice. The Dodd Frank law is a federal statute that requires sellers to qualify buyers for owner-carry deals. Prepayment penalties are illegal in some states, but they are still legal under Federal law. How to negotiate prepayment penalties. Laws Ann. The penalty is based on . As for personal loans, some lenders charge prepayment penalties, but many do not. Great state tax deduction from a bank colorado, prepayment penalty law. In their Financing column, Jeffrey B. Steiner and Jason R. Goldstein discuss how the prepayment of a loan in commercial real estate transactions may result in . 438.31c(1c)(2)(c) . View the 2021 Colorado Revised Statutes . Estimated 2023 Colorado alternative minimum tax $ 00 4. Most states allow lenders to charge a prepayment penalty, and lenders may choose not to impose prepayment penalties on their loans. What Are the Best Auto Loan Rates for 72 Months? DENVERColorado regulators have imposed a new rule limiting prepayment penalties on adjustable-rate mortgages in hopes of reducing the states high foreclosure rate. All rights reserved. Open Split View. You should also ask your lender, or the dealer . Learn more about legal terms and the law at FindLaw.com . FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. A PREPAYMENT PENALTY PROVISION. the date of execution of a covered loan. restructure sought by the obligor. Most mortgages with prepayment penalties have an interest rate one-half percent to one full percent below those without penalties. a default; except that this paragraph (d) shall not apply to periodic interest rate The law addresses deductions from wages, vacation, commissions, bonuses, final pay, pay periods and paydays, and pay statements. I HAVE CHOSEN TO ACCEPT THE PRODUCT ____ WITH / ____WITHOUT A PREPAYMENT PENALTY." Even if your state has a ban on prepayment penalties, make sure you read the entire contract before signing, as some lenders have been known to skirt prohibitions against prepayment penalties. When lenders issue loans, theyre counting on the profit they make by charging you interest. Lenders are prohibited by law from charging a prepayment penalty for an auto loan of 61 months or longer. In amendments to various parts of Colorado's administrative code, as set forth in 36 CR 20 (2013), this provision was slated for repeal, effective January 10, 2014. "Shop the market with caution, and talk to several lenders to inquire about the various loan options," Gallagher says. If the loan doesnt have this exact terminology, look for any language in the contract that appears to penalize you for paying early. 0000001042 00000 n
If you prepay more than twenty percent, the penalty is usually six months interest on the amount prepaid in excess of the twenty percent. 0000001156 00000 n
This prohibition does not apply when the payment schedule is adjusted to account . interest to refinance, by amendment, payoff, or otherwise, an existing loan made to Except as provided in paragraph (c) of this section or otherwise established by HUD, the mortgage shall contain a provision permitting the mortgagor to prepay the mortgage in whole or in part upon any interest payment date, after giving the mortgagee a 30-day notice in writing in advance of its intention to so prepay. Percentage of loan balance: This is the most common way lenders calculate prepayment penalties. any 12-month period in excess of 20 percent of the original principal. (III) Lender must offer choice. Not all mortgages have a prepayment penalty. Percentage of loan balance: This is the most common way lenders calculate prepayment penalties. 726 0 obj
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If you prepay more than twenty percent, the penalty is usually six months interest on the amount prepaid in excess of the twenty percent. Debt.org. Chapter 675 Installment Loans. NO PREPAYMENT PENALTY OR FEE SHALL BE CHARGED OR COLLECTED ON A LOAN OR FORBEARANCE SECURED BY REAL PROPERTY OWNED IN A COOPERATIVE FORM OF OWNERSHIP WHERE OVER FIFTY PERCENT OF THE UNITS ARE SHAREHOLDER OCCU- PIED. to covered loans that are secured by a first mortgage, deed of trust, or security 0000005627 00000 n
When consumers see terms that have to do with prepayment penalties, they should search the loan . (2020, August 28). It does not, however, indicate the maximum interest rate which may be charged, which may be set forth in another part of state law. The 192nd General Court of the Commonwealth of Massachusetts. Part 429 Rule Concerning Cooling-off Period for Sales Made at Homes or at Certain Other Locations. Automobiles, vans, trucks, or other motor vehicles (including cars sold at auctions, tent sales, or other temporary places of business) do not qualify for this 72-hour return option. December 18, 2007 at 1:43 a.m. DENVERColorado regulators have imposed a new rule limiting prepayment penalties on adjustable-rate mortgages in hopes of reducing the state's high foreclosure . | https://codes.findlaw.com/co/title-5-consumer-credit-code/co-rev-st-sect-5-3-5-102/. Exclusive Member of Mediavine Home. Prepayment fees and penalties shall not exceed six months' interest for prepayment within the first three years of the loan. Read through the entire contract, including the fine print, and if your lender charges a prepayment penalty, it will be spelled out in writing. 0000064443 00000 n
Mortgage Laws and Regulations in Different States: A Quick Primer. Cannabis Tax Program: A 10 percent late payment penalty and a 50 percent failure to pay penalty will apply if you do not file your return or To shed further light on the matter, Article 4 of the same law gives the following definitions (reproduced verbatim): 1999); see Aronoff v. When borrowers obtain an auto loan, they must make monthly payments to repay the debt. These fees can differ by state and local laws and regulations. 1999); see Aronoff v. 42 Best Student Loans in Colorado of June 2022 Compare Student Loans and Choose The Best One for You. Prepayment penalties are fueling what were seeing, particularly in lower-income markets, Toll said. Hall Realty, Inc P.O. 0000008048 00000 n
Laws Ann. Youre trying to decide if it makes more sense to pay off your loan early which comes with a prepayment penalty or if you should just stick to your regular payment schedule. Related Terms from the Property Rights and Real Estate Law Glossary. The actual rate reduction depends on the loan program and term or life of the mortgage. 438.31c(1c)(2)(c) . Generally, a prepayment penalty is a charge assessed against a borrower who elects to pay off a loan before it is due. September 10, 2019, 9:47 AM. No covered loan may contain a call provision that permits the lender, in its sole I HAVE CHOSEN TO ACCEPT THE PRODUCT ____ WITH / ____WITHOUT A PREPAYMENT PENALTY." 5-3.5-103.