AN ACT RELATING TO PROPERTY -- MORTGAGES OF REAL PROPERTY

Summary

The law sets new rules for paying off mortgages early on owner‑occupied properties that have one to four dwelling units. Lenders may charge a penalty of up to 2% of the balance during the first year, but after one year borrowers can prepay without any penalty, and any penalty must disappear after five years. For non‑purchase‑money loans, penalties are allowed only if they are clearly disclosed, the borrower agrees, and no penalty applies after 60 months.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

Topics

Share