State rules / Prepayment Penalty Rules

Connecticut prepayment penalty rules

Connecticut does not restrict prepayment penalties on residential first-lien mortgages (except for reverse mortgages and graduated payment mortgages, where penalties are prohibited). For first mortgages, prepayment penalties are generally a matter of contract, as the state law is silent on the issue.

Source

Connecticut Office of Legislative Research Report 96-R-1211 (1996)

https://www.cga.ct.gov/PS96/rpt/olr/htm/96-R-1211.htm

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.

Stop missing the rule that costs you a loan.