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:
If you pay the loan off early, you may have to pay a penalty if a penalty was part of your loan agreement. Prepayment penalties are generally based directly or indirectly on your remaining loan balance. The longer youâve had your loan and the less you owe, the smaller your penalty will be.hop Around. If youâre shopping for loans and you donât want a prepayment penalty, shop around. Different lenders will approach your needs differently. You may have to pay a higher interest rate, which means your monthly payments will be higher, but youâll be able to get out of the loan at any time.