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October 05, 2006 | 10:09 PM

Soft prepayment penalty vs. hard prepayment penalty

Thu Oct 5, 2006 10:10PM | By Tony

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Q: What is the difference between soft and hard prepayment penalties?

A: Hard prepayment penalty penalizes if you either refinance or sell. Soft prepayment penalty only penalizes in case you refinance.

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