Penalty

Definition

• A mortgage penalty is a set rate or length of time the penalty will be charges based on remaining mortgage amount. Usually three months interest or interest rate differential. Penalty –- A mortgage penalty is a set rate or length of time the penalty will be charges based on remaining mortgage amount. Usually three months interest or interest rate differential.

Synonyms
fine, fee, charge, amends, compensation

Related Terms and Acronyms

• Add-on Interest — Definition,
  • Interest that is computed at the beginning of the loan, then added to the principal, so that all must be repaid, even if the loan is paid off early.
• Closed Mortgage — Definition, Important,
  • Closed mortgages involve a strict repayment schedule of a specific amount with optional limited lump sum payments and payment increases.
• Delinquent Mortgage — Definition, Important,
  • A mortgage loan where the borrower fails to make payments as specified in the loan agreement.
• Interest Rate Differential (IRD) — Acronym, Very Important,
  • The penalty one pays for breaking a mortgage.
• Late Charge — Definition,
  • A fee imposed on a borrower for not paying on time
• Lump Sum Payment — Definition,
  • One-time single-sum payment or payout.
  • An extra payment made to reduce a loan.
• Open Mortgage — Definition, Important,
  • A mortgage that can be paid off prior to maturity without penalty.
• Penalty Rate — Definition,
  • Several percentage points higher than a card's current annual percentage rate, which goes into effect after two late payments. On some cards, a single late payment triggers a penalty rate.
• Pre-payment Clause — Definition,
  • A clause that stipulates the amount of principal a borrower may prepay ahead of schedule without penalty as well as the prepayment penalty for larger prepayments.
• Pre-payment Penalty — Definition,
  • A lender's charge to the borrower for paying off the loan before the end of the term.