State rules / Prepayment Penalty Rules

Arkansas prepayment penalty rules

Yes, Arkansas permits prepayment penalties on residential first-lien mortgage loans, but only within the first 36 months after loan origination, with decreasing caps: 3% in year one, 2% in year two, and 1% in year three. No penalty is allowed after 36 months.

Prepayment Penalty Rules in other states

Researched and verified against primary sources by AI, with the controlling citation above. Not human-reviewed and not legal advice — confirm against the cited source before relying on it. Last updated July 5, 2026.

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