All Comparison Tables
Mortgage Prepayment Penalty Laws
Federal & State Law Editorial TeamLast reviewed: April 2026
Whether each state allows or limits prepayment penalties in residential mortgages and any first-year prohibition.
50 States2 data columnsLast updated: May 2026
Click any column header to sort ascending or descending. Click again to reverse, and a third time to reset.
| State | Allowed | First-Year Ban |
|---|---|---|
| Alabama | Limited | Yes |
| Alaska | Allowed | No |
| Arizona | Limited | Yes |
| Arkansas | Limited | Yes |
| California | Limited | Yes |
| Colorado | Limited | Yes |
| Connecticut | Limited | Yes |
| Delaware | Allowed | No |
| Florida | Limited | Yes |
| Georgia | Limited | Yes |
| Hawaii | Limited | Yes |
| Idaho | Allowed | No |
| Illinois | Limited | Yes |
| Indiana | Limited | Yes |
| Iowa | Limited | Yes |
| Kansas | Allowed | No |
| Kentucky | Limited | Yes |
| Louisiana | Limited | Yes |
| Maine | Limited | Yes |
| Maryland | Limited | Yes |
| Massachusetts | Limited | Yes |
| Michigan | Limited | Yes |
| Minnesota | Limited | Yes |
| Mississippi | Limited | Yes |
| Missouri | Limited | Yes |
| Montana | Limited | Yes |
| Nebraska | Limited | Yes |
| Nevada | Limited | Yes |
| New Hampshire | Limited | Yes |
| New Jersey | No (residential) | N/A |
| New Mexico | Limited | Yes |
| New York | Limited | Yes |
| North Carolina | Limited | Yes |
| North Dakota | Limited | Yes |
| Ohio | Limited | Yes |
| Oklahoma | Limited | Yes |
| Oregon | Limited | Yes |
| Pennsylvania | No (most residential) | N/A |
| Rhode Island | Limited | Yes |
| South Carolina | Limited | Yes |
| South Dakota | Allowed | No |
| Tennessee | Limited | Yes |
| Texas | No (homestead) | N/A |
| Utah | Allowed | No |
| Vermont | No (residential) | N/A |
| Virginia | Limited | Yes |
| Washington | Limited | Yes |
| West Virginia | Limited | Yes |
| Wisconsin | Limited | Yes |
| Wyoming | Allowed | No |
| District of Columbia | Limited | Yes |
Qualified mortgages under federal Dodd-Frank/ATR rules limit prepayment penalties nationwide for most consumer residential loans.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.