Prepayment penalties are typically negotiable and can be structured to fix the needs of the client.
| Year | Fixed Term Loan & Prepayment Penalty
(% of loan balance) |
|||||
| 3 Year | 5 Year | 7 Year | 10 Year | 15 Year | 20 Year | |
| 1 | 3% | 3% | 4% | 5% | 5% | 5% |
| 2 | 2% | 2% | 3% | 4% | 4% | 5% |
| 3 | 1% | 2% | 3% | 4% | 4% | 4% |
| 4 | 1% | 2% | 3% | 3% | 4% | |
| 5 | 1% | 2% | 2% | 4% | ||
| 6 | 1% | 2% | 4% | |||
| 7 | 2% | 3% | ||||
| 8 | 2% | 3% | ||||
| 9 | 1% | 2% | ||||
| 10 | 2% | |||||
| 11 | 2% | |||||
| 12 | 2% | |||||
| 13 | 1% | |||||
| 14 | 1% | |||||
| 15 | 1% | |||||