Under Prepayment what does the statement "If you pay off your loan early, you will not be entitled t

It means that the interest on the loan is charged as it accrues, rather than in advance. All conforming mortgages are written this way. Some consumer loans charge the interest for the life of the loan up front (ie: you borrow $5000 and owe $6000 immediately after if the interest for the life of the loan is $1000) rather than the interest being charged on the unpaid balance on a daily or monthly basis. Loans that charge the interest up front are usually high interest, consumer type loans written to folks who have few alternative credit sources.