State rules / Prepayment Penalty Rules
Louisiana prepayment penalty rules
Louisiana permits prepayment penalties on residential mortgage loans with a maximum of 5% of the unpaid principal balance if prepaid in the first year, decreasing by 1% each subsequent year to 1% in the fifth year. No prepayment penalty is allowed after five years or if the prepayment is from insurance proceeds after a governor-declared disaster.
Prepayment Penalty Rules in other states
- Iowa prepayment penalty rules
- Kansas prepayment penalty rules
- Kentucky prepayment penalty rules
- Maine prepayment penalty rules
- Maryland prepayment penalty rules
- Massachusetts 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.