You will know your prepayment penalty at closing. Though, you should ask your mortgage professional what your mortgage will have in terms of a prepayment penalty before you get to closing. They will know the answer for you.

If you are paying off a prepay penalty make sure the mortgage professional lets you know your "break-even" time.

There are two different types of prepayment penalties, soft and hard. A soft prepayment penalty will only apply if you refinance your home. A hard penalty will apply whether you sell, or refinance.

Accepting a prepayment penalty can often lower your interest rate and monthly payments. If you are not sure if you will sell or refinance your house before then end of your prepayment penalty period then you should considering paying a one time buy out fee to eliminate the prepayment penalty altogether.

Be sure to take a look at your Mortgage Note. You will be able to find the terms of the penalty here.

Prepayment penalty's can range from 2 month's interest all the way up to 10% of the original loan amount.