State rules / Prepayment Penalty Rules

Tennessee prepayment penalty rules

Tennessee permits prepayment penalties on residential first-lien mortgage loans as a matter of contract, subject to disclosure requirements for consumer loans not covered by the federal Truth in Lending Act. No statutory time limit or cap on the penalty amount is imposed.

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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