Which One of the Following Is TRUE About Prepayment Penalties

question 2

Multiple Choice

Which one of the following is TRUE about Prepayment penalties:

• A) They are never used with residential mortgages
• B) They lower the effective cost if the loan is repaid before maturity
• C) They are equivalent to charging additional points for the loan
• D) They are not included in the APR calculation

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Definitions:

Cultural Biases

Refers to the tendency to interpret or judge phenomena based on one's own cultural norms and values.

Social

Pertaining to society, or the organized interaction among people, often involving cooperative and collaborative behavior.

Genetic Origins

The hereditary aspects and biological background that influence an individual's physical and behavioral traits.

Manie Sans Delire

A historical term describing a psychological condition of mania without delusion, often related to what is now understood as bipolar disorder or specific forms of mania.