May 04 , 2016

Tampa School of Real Estate

Penalty Clause

Definition:   a provision in a mortgage that requires the borrower to pay a penalty in money if the mortgage payments are made in advance of the normal due date or if the mortgage is paid in full ahead of schedule

Pronunciation:   \ˈpe-nəl-tē\ \ˈklȯz\

Used in a Sentence:   We chose a mortgage without a penalty clause because we planned on paying it off early.