What are the Laws regarding Prepayment Penalties?
MASSACHUSETTS Chapter 183: Section 56 Mortgage notes; provisions for prepayment Section 56. Any mortgage note secured by a first lien on a dwelling house of three I less separate households occupied or to be occupied in whole or in part by the mortgage shall be subject to the condition that if said note is paid before the date fixed for payment any additional amount required to be paid in such event shall be an amount which should be the balance of the first year’s interest or three months’ interest whichever is less; except, that if anticipatory payment is made within thirty-six months from the date of note for the purpose of refinancing such loan in another financial institution, an additional payment not in excess of three months’ interest may be required; provided, however, with respect to any such mortgage loan insured by the Federal Housing Commission the mortgagor may be required to reimburse the mortgagee to the full amount of any charges, premiums, or fees required by any stat
