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1. Prepayment Pros And Cons
Figuring the differential, called the "current value adjustment", works as follows: If the lender simply charges the interest differential between 18 and 12 per cent for three years of a $50 000 mortgage, the penalty is $9000.
http://www.fun-home-projects.com/home_ownership/​finance_and_security/​prepayment_pros_and_cons.html

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