11 claims generally exclude prepayment charges on the home-based earliest mortgage loans. They are Alabama, Alaska, Illinois (if for example the rate of interest is over 8%), Iowa, Nj-new jersey, New Mexico, New york (lower than $100,000), Pennsylvania (not as much as $fifty,000), South carolina (under $100,000), Tx, and you can Vermont. Some defense simply single-family home; someone else safety multiple-members of the family dwellings to half a dozen tools. Tend to there are many standards, like that brand new homes have to be proprietor-occupied, and you will exemptions to own federally insured money. On the other hand, Maine prohibits charges into varying speed mortgage loans, certain large-price mortgages, and you may particular consumer agreements, and Maryland prohibits all of them to have nonbank mortgage lenders merely.

For the fifteen states, i receive legislation you to definitely limitation prepayment penalties for different particular residential earliest otherwise 2nd mortgage loans for some reason. These types of claims were: California ( 5 yrs.), Connecticut (step three yrs., 5%), Kansas (half a year), Louisiana (5 yrs., 5%), Massachusetts (step three yrs.), Michigan (step 3 yrs., 1%) Minnesota (42 weeks, 2%), Missouri (5 yrs., 2%), Mississippi (5 yrs., 5%), New york (step one year.), Kansas (5 yrs., 1%) Rhode Isle (step one yr., 2%), Virginia (2%), West Virginia (step 3 yrs., 1% for earliest, banned to possess next mortgage brokers), and you will Wisconsin (5 yrs., 60 days ' desire).