Home > Personal > Personal Lending > Mortgage > Mortgage Resources > Glossary > Prepayment Penalty Prepayment Penalty November 9, 2021 A monetary penalty charged by a lender if all or part of a loan is paid off before it is due.You Might Also Like: Living QuartersFirst-Time Homebuyer’s Playbook: 4 Steps to a Successful Offer Everyday MoneyBank Holidays: Understanding Their Impact on Deposits and Transactions Living QuartersMortgage Lending for Veterans at Bank Five Nine All Things CommunityReviewing Random Acts of Kindness 2023 Everyday MoneyWhat are ACH Payments and How Do They Work?