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Penalty

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Penalty
A fee imposed for a violation of a rule.
    
A clause in a mortgage contract that says if the mortgage is prepaid within a certain time period, a penalty Will be assessed. This is known as Prepaid penalty. The penalty is usually based on percentage of the remaining mortgage balance or a certain number of months worth of Interest.
    
Underpayment penalty  is Tax penalty enacted on an individual for not paying enough of his or her total estimated Tax and withholding. If an individual has an underpayment of estimated Tax, they may be required to pay a penalty .
Posted by  Information Management Network LLC.
 
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