1, Refinancing with a prepayment penalty Treat it like a closing cost and figure out what the payback period would be, says Dr.

2, And of course, try to get the new loan without a prepayment penalty.

3, Unfortunately, living in a minority neighborhood puts a homeowner at significantly higher risk of having a prepayment penalty.

4, Of course, you should always ask if a new loan has a prepayment penalty.

5, If interest rates have dropped a lot, and you can't get out of the prepayment penalty, it may be worth rolling that amount into a new loan.

6, One of the most common terms found in a new home loan is a prepayment penalty.