State rules / Prepayment Penalty Rules
Texas prepayment penalty rules
Texas permits prepayment penalties on residential first-lien mortgage loans where the interest rate does not exceed 12% per year. For loans with an interest rate greater than 12% on a residential homestead, prepayment penalties are prohibited unless required by a federal agency. No other conditions, time limits, or caps on penalty amounts are specified in the statute.
Prepayment Penalty Rules in other states
- Rhode Island prepayment penalty rules
- South Carolina prepayment penalty rules
- Tennessee prepayment penalty rules
- Utah prepayment penalty rules
- Vermont prepayment penalty rules
- Virginia 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 6, 2026.