Prepayment Clause

Pre-closing Inspection Reading Prepayment Clause 1 minute Next Prepayment Penalty

Definition:   a provision in a mortgage that allows the mortgagor to pay the mortgage debt ahead of time without penalty

Pronunciation:   \(ˌ)prē-ˈpā-mənt\ \ˈklȯz\

Used in a Sentence:   Since we had a prepayment clause in our mortgage we were able to pay off our mortgage early without any penalty.