is prepayment penalty legal in alabama?

Guest 0.10 Dollars($)

Guest 0.10 Dollars($)

Mork, such penalties are not legal in the state & are prohibited as per Alabama Consumer Finance Act.

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blue · Posted: Fri Mar 23, 2007 3:32 pm Post subject:

Hi Mork,

Welcome to Mortgagefit discussion board.

If you would like to know more about prepayment penalties then please go through this under mentioned page:

http://www.mortgagefit.com/prepayment-penalty.html

Thanks
Blue

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Prepayment penalty is not legal in Alabama.

molliehuber · Joined: 08 Feb 2007 Posts: 10 4.93 Dollars($)

I was wondering if it is legal in Florida?

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Mollienhuber,

A prepayment penalty is legal in Florida.

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what is prepayment penalty?

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Hi George,

Lenders often charge borrowers with an amount for repaying the loan at an early period before the actual loan term gets over. This concept of charging money is known as prepayment penalty. The lender charges the amount to recover the loss in interest payment on account of the prepayment or early payment of the loan.

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