Where every dollar of a mortgage payment goes
Prepayment penalties
In one paragraph
Most mortgages today have no prepayment penalty, and federal rules limit when one is allowed. Where permitted, a penalty can apply only in the early years and must be disclosed. Your Loan Estimate and Closing Disclosure state whether your loan has one.
Last reviewed against the primary sources listed below.
Check your documents
Look for the prepayment penalty line on page one. The CFPB explains prepayment penalties.
Common questions about interest
Will I be charged for paying my mortgage off early?
Usually not; check the prepayment penalty line on your disclosures.
Can a lender add a prepayment penalty later?
No. It must be part of the original loan terms.