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Mortgage Prepayment: The Trial of Common Sense

Frank S. Alexander

Emory Law


Cornell Law Review, Vol. 72, p. 288, 1987

Paying off a mortgage before its natural date of maturity may trigger an fee for prepayment. Many battles have been fought over the equitable legitimacy of prepayment fees, with mortgage companies arguing that fees for premature payment are common sense and homeowners arguing that common sense dictates that mortgages may be prematurely satisfied penalty-free. This article reexamines the history of mortgage prepayment penalties, evaluates the current economic pressures forcing the issue to the forefront, and proposes a solution for the mortgage prepayment problem.

Number of Pages in PDF File: 56

Keywords: Mortgage prepayment penalty, fine real estate finance, foreclosure, prepay, prepaid

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Date posted: November 14, 2011  

Suggested Citation

Alexander, Frank S., Mortgage Prepayment: The Trial of Common Sense (1987). Cornell Law Review, Vol. 72, p. 288, 1987. Available at SSRN: http://ssrn.com/abstract=1959526

Contact Information

Frank S. Alexander (Contact Author)
Emory Law ( email )
1301 Clifton Road
Atlanta, GA 30322
United States
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