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:
What is a 'Prepayment'. A prepayment is the settlement of a debt or installment payment before its official due date. A prepayment can either be made for the entire balance of a liability or for an upcoming payment that is paid in advance of the date for which the borrower is contractually obligated to pay.