Once you begin making payments on an amortization schedule for a loan such as a mortgage or car loan,most contracts clearly state that you may NOT pay off the loan early.

Question

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Most contracts do not prohibit early loan repayment, in fact, many loans offer incentives for early repayment such as lower interest rates or no prepayment penalties. However, it is always important to read the terms and conditions of any loan contract to fully understand the repayment options and any associated fees or penalties.

Once You Begin Making Payments on an Amortization Schedule for a Loan