Mortgage Prepayment: The Trial of Common Sense
Frank S. Alexander
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, prepaidAccepted Paper Series
Date posted: November 14, 2011
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