State rules / Prepayment Penalty Rules
Massachusetts prepayment penalty rules
Prepayment penalties are permitted but limited. For prepayment within 36 months of the note date, the penalty is capped at the lesser of the balance of the first year's interest or 3 months' interest. If prepayment is due to refinancing with another lender within 36 months, a penalty of up to 3 months' interest may be charged. No prepayment penalty is allowed after 36 months, and no penalty may be charged for making additional principal payments during the loan term.
Prepayment Penalty Rules in other states
- Louisiana prepayment penalty rules
- Maine prepayment penalty rules
- Maryland prepayment penalty rules
- Michigan prepayment penalty rules
- Minnesota prepayment penalty rules
- Mississippi prepayment penalty rules
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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.