Is it legal to charge a mortgage prepayment penalty?
The ability of an institution to charge a prepayment penalty must be contained in the mortgage note. State banking law and regulation provide that a prepayment penalty may be imposed only during the first year if the interest rate remains fixed for a period of at least five years.
Contact: Consumer Representative
Phone: 1 800 334 3360
or Fax: 1 212 618 6570