State rules / Prepayment Penalty Rules
Colorado prepayment penalty rules
Colorado does not prohibit prepayment penalties on residential first-lien mortgage loans. However, for adjustable-rate mortgages, a prepayment penalty that extends past the adjustment date creates a presumption that the loan does not provide a reasonable tangible net benefit, which violates the mortgage broker's duty of good faith and fair dealing. For fixed-rate mortgages, no specific state restriction was found in the provided text.
Prepayment Penalty Rules in other states
- Alaska prepayment penalty rules
- Arkansas prepayment penalty rules
- California prepayment penalty rules
- Connecticut prepayment penalty rules
- Delaware prepayment penalty rules
- Florida prepayment penalty rules
- Compare all 44 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.