State rules / Prepayment Penalty Rules

West Virginia prepayment penalty rules

Prepayment penalties are permitted on first-lien mortgage loans only within the first three years after origination, with a maximum penalty of 1% of the original principal amount. However, prepayment penalties are prohibited on loans from industrial loan companies or secondary mortgage lenders, and cannot be charged on a refinancing that occurs within one year of the prior loan. Loans made by the West Virginia Housing Development Fund are exempt from these restrictions.

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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