State rules / Prepayment Penalty Rules

Kentucky prepayment penalty rules

Prepayment penalties are permitted on residential first-lien mortgages in Kentucky, but they cannot exceed 5% of the outstanding loan balance and cannot be assessed after the fifth anniversary of the mortgage. The penalty terms must be prominently displayed in the note.

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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