I am still learning What is a lock out term

What will it mean in a loan 5 year lock out ?

Commercial or Residential?

The lock-out in commercial a commercial transaction is just that, a lock-out…you cannot prepay, period (subject to state law). The lock out period is usually followed by a prepayment penalty period (straight PPP %, yield maintenance, defeasance, etc.)

I have never seen a lock-out provision in a residential mortgage and while I’m not a legal professional I would assume that they are illegal.