I have a home mortgage that is greater than 12% per year. I’d like to pay it off, but there is a prepayment penalty. What can I do?
Absent loans under Federal programs, Sec. 302.102 of the Texas Finance Code prohibits pre-payment penalties on a residential homestead of the borrower if the interest rate is greater than 12 percent a year.
See also: Sec. 343.201 – 205 of the Texas Finance Code, as prepayment penalties may also not apply to high cost home loans.
