[cercis]

Prepayment penalties are always negotiable and even illegal in some states. Never agree to one, not for a car or a house.

I worked for a mortgage company and their standard contract had a prepayment penalty. We got in big trouble for trying to collect one in a state that doesn't allow it. Do the research on your state and if it is illegal, TELL them and even report them to the attorney general. If it isn't illegal, just strike it out in the note and tell them you will not agree to it. They'll generally back down, they want your business.