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:

Osmium

A dense, hard, bluish-white transition metal in the platinum group that is the most dense naturally occurring element.

Isotope

A variant of a particular chemical element which differs in neutron number, though it shares the same number of protons.

Electrons

Negatively charged subatomic particles with a very small mass, found orbiting the nucleus of an atom.

Oxygen

A chemical element with symbol O, essential for respiration in many organisms and important in various industrial processes.