A prepayment penalty clause helps to protect the borrower should the lender sell the loan within a short time after issuing a mortgage.

Name: A prepayment penalty clause helps to protect the borrower should the lender sell the loan within a short time after issuing a mortgage.
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A prepayment penalty clause is designed to protect the lender, not the borrower, by discouraging the borrower from paying off the loan early, which could deprive the lender of expected interest income.

A Prepayment Penalty Clause Helps to Protect the Borrower Should