Lisa Madigan

I've repeatedly seen unscrupulous lenders use every con in the book to charm and lie to homeowners. Lenders actually paid brokers a premium to put people in higher-priced loans with toxic features, such as adjustable rates and prepayment penalties.

American Public Servant

John Gavin

Sure, I travel. I went to Washington to negotiate a $1 billion prepayment to Mexico on its oil revenues to help it out of its financial crisis.

American Actor

Prepayment can sometimes lead to financial benefits, like discounts.

Discount Benefit

Prepayment signals trust in the provider and willingness to commit.

Trust Implication

Prepayment can help with budgeting by paying for future expenses now.

Budget Management

Not all loans have prepayment penalties; conditions can vary.

Penalty Differences

Loan prepayments can provide flexibility, reducing interest over time.

Financial Flexibility

Consider your liquidity before making a prepayment on a loan.

Liquidity Consideration

Prepayment for utilities helps avoid surprises in your monthly budget.

Utility Budgeting

Prepayment meters allow monitoring and controlling utility usage.

Meter Awareness

 he'd received a knock on the door from a broker promising to refinance his mortgage. But what the broker didn't tell him was that this was a new kind of mortgage. A mortgage with an inflated interest rate, and a balloon payment and a prepayment penalty if he tried to get out of it.