redemption fee

Definitions (2)
Popular Terms
1. Banking: Penalty charged by the mortgagee (bank or lender) if a mortgage is paid off (redeemed) (1) before its maturity date, to compensate for the lost interest, (2) after its maturity or foreclosure date, for the penalties or the court expenses incurred.
2. Mutual fund: Penalty charged for withdrawals of invested funds by the investor before a specified period (ranging from one month to one year) after investment, in order to discourage speculators.

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