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:
A prepayment penalty on a mortgage essentially charges you extra if you pay off the mortgage early. What is considered early, however, will be laid out in your loan documents and therefore must be scrutinized carefully.ow to Avoid Paying a Prepayment Penalty. If you have a prepayment penalty, especially a âhardâ one, and want to sell or refinance before the penalty period expires, you probably canât get out of it. After all, you signed a contract agreeing to pay.