A commercial borrower has a $12,000,000 interest-only mortgage at 8% interest rate for 15 year. There is a lockout period of 10 years for the loan. The mortgage has a prepayment penalty if the borrower prepay. Assuming the loan is prepaid at the end of year 12 and the mortgage interest rate at that time is 9%. How much is prepayment penalty, if the lender will charge a 2% penalty on the loan balance $200,000 $260.000 $240,000 50 Previous Next >