A prepayment penalty is a charge that the borrower pays the lender for the privilege of prepaying the loan before maturity. The duration of the penalty is generally between 1 and 5 years. Some lenders may refer to this as a cancellation fee.
Pursuant to Georgia law, unless stipulated in the contract, no prepayment penalty can be charged. Since prepayment penalties are usually binding, you should read your contract carefully so that you know whether your loan has this feature.