The borrowers right to prepay the loan

The borrower may fully or partially prepay the loan earlier than originally scheduled.

If the borrower prepays the loan or part of it earlier, the monthly payment must be adjusted or can become zero (if prepaid fully).

Is there any penalty for paying the loan early?

Usually, there's no penalty, but some lenders can charge a fee if the loan is paid in full before the term ends. Just make sure you confirm this with your lender before getting the actual loan.

What are the advantages if a borrower pays loan early?

By paying off the loan earlier than scheduled, the borrowers can save on the extra money (the interest) the mortgage is costing them.

The sooner a loan is paid off, the sooner borrower will stop making monthly payments with interest.

Also, by paying the principal loan sooner, the borrower increases the equity they have on the home.