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

---

Definitions:

White South

Refers to the Southern states of the U.S and their culture, politics, and society, predominantly shaped by white Americans, especially during and after the period of slavery.

Corruption

Dishonest or fraudulent conduct by those in power, typically involving bribery or the abuse of power for personal gain.

Radical Reconstruction

The period after the American Civil War during which the federal government took direct control over the former Confederate states to enforce the rights of formerly enslaved people.

Railroad Construction

The process of building the infrastructure necessary for train travel, including tracks, stations, and bridges.