Русско-англо-русский юридический словарь

A prepayment penalty clause is common in mortgage contracts, and it specifies that if the borrower pays down or pays off the mortgage early, usually within the first five years of the loan, a penalty will be levied. The prepayment penalty safeguards the lender from the loss of interest income that would have accrued if the loan had not been prepaid. (Legal Information Institute)