Under Regulation Z, a mortgage loan generally may include a prepayment penalty only if the loan is a qualified mortgage that is not higher-priced and the penalty:

Giải thích

Regulation Z restricts prepayment penalties on covered mortgages: they are allowed only on certain qualified mortgages, are capped in amount, may not extend beyond the first three years, and the lender must offer an alternative loan without a prepayment penalty. Penalties cannot run the full term, apply automatically to all ARMs, or be unlimited merely because disclosed. These limits protect borrowers who refinance or pay early.