Best Answer: Hertz, in electronic terms, means cycles per second. This originally pertained to radio waves and sound waves, but is now commonly used to measure the speed of a computer processor (the number of hertz is equal to the number of clock ticks that a processor will have in one second). Here are the most commonly used prefixes and their rough sizes: Kilo - a thousand.
The prepayment penalty is often 80% of six months interest. It can vary, but in our example it is 80% because the lender allows the borrower to pay off 20% of the loan balance each year, so the penalty only hits the borrower for 80%.o if a borrower has a mortgage rate of 6.5% on a $500,000 loan amount, their interest-only payment comes out to $2708.33 per month. Multiply that by six months, take 80% of the total, and you end up with a hefty prepayment penalty of $13,000. An example of a prepayment penalty:
Protecting borrowers from mortgage predators. Penalties For Early Payment. October 12, 2001, Revised November 17, 2004, Revised April 18, 2007, August 28, 2011. A prepayment penalty is a provision of your contract with the lender that states that in the event you pay off the loan entirely, you will pay a penalty.