The first two statements are true. Making extra payments on a loan can save you money in the long run because it reduces the amount of interest you will pay over the life of the loan. By paying down the principal balance more quickly, you will pay less in interest charges over time. The shorter the term of the loan, the more quickly you will pay off the loan and the less interest you will pay overall.
The third statement is also true. If you choose a shorter term for your loan, your monthly payments will be higher. This is because you are paying off the loan in a shorter amount of time, so you need to make larger payments each month to meet that goal.
The fourth statement is false, however. While it is true that some loans impose penalties for early repayment or extra payments, this is not always the case. It is important to read the terms of your loan agreement carefully to determine whether there are any penalties for making extra payments. Some loans may even offer incentives for paying off the loan early or making extra payments, such as reduced interest rates or fees.