State rules / Prepayment Penalty Rules

Iowa prepayment penalty rules

Iowa prohibits prepayment penalties on loans secured by real estate mortgages, including residential first-lien loans. No penalty or additional charge is allowed beyond the interest due for the period the borrower had use of the money. The lender may require up to 30 days' advance notice of prepayment.

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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