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Product / State Rule Engine

Prepayment penalty rules, 47 states and DC.

A prepayment penalty (a fee some loans charge if you pay the loan off or refinance early) is allowed in most states for business-purpose loans — but not all. This map shows where it's clear, where thresholds or entity structuring apply, where lenders decline entirely, and where the law isn't settled or hasn't been researched yet. Click any state for full details.

Every state entry cites the governing statute — including where a usury cap could apply — so you can verify it yourself. In most states business-purpose loans are exempt from consumer usury caps, but always confirm with your lender or counsel.

48
jurisdictions researched
4
need restructure
27
clear to quote

Click any state to see full prepayment penalty rules, statutory reference, and pricing impact. Hover to preview.

Prepayment penalty allowed
Conditional — Restrictions Apply
Entity Vesting Required
Effectively Prohibited
Ambiguous — No Consensus
Not Determined — Verify
NJ · New Jersey
Entity Vesting Required
Prepayment penalty rules
Prohibited for INDIVIDUALS; permitted for entities (LLC rules vary by lender).
Statutory reference
N.J.S.A. 46:10B-2
Pricing impact for your deal
Entity vesting required — individual borrowers barred

Statutory research, not legal advice. Prepayment-penalty treatment turns on entity vesting, loan purpose and the specific lender matrix — confirm with your lender or counsel before relying on any entry here.

Market data as of January 2026. Rates, lender terms, and state rules are dated research — verify with current sources before relying on them. 4 of 10 datasets are past twice their review cycle; treat those figures as provisional.