By Jessica Murray Posted October 2, 2015 In Prepayment Penalty2015-10-022015-10-16https://info.peerstreet.com/wp-content/uploads/2018/04/peerstreet_logo.pngPeerStreethttps://info.peerstreet.com/wp-content/uploads/2018/04/peerstreet_logo.png200px200px An agreement between a borrower and lender that relates to rules for when the borrower can prepay a mortgage. If the borrower prepays early, he/she will be subject to such predetermined penalties. Tweet Share 0 +1 LinkedIn 0 Related Articles: Prepayments and Extensions. What You Need to Know.