Rhode Island S3073 limits mortgage prepayment penalties to owner-occupied properties with one to four units.

Rhode Island S3073 amends mortgage laws to restrict prepayment penalties to mortgages on owner-occupied properties with one to four dwelling units. The bill allows lenders to charge a penalty during the first year, but it cannot exceed two percent of the balance due. After one year, full payment can be made without penalty. This act takes effect immediately upon passage.

Rhode Island S3073 limits mortgage prepayment penalties to owner-occupied properties with one to four units.

Rhode Island S3073 amends mortgage laws to restrict prepayment penalties to mortgages on owner-occupied properties with one to four dwelling units. The bill allows lenders to charge a penalty during the first year, but it cannot exceed two percent of the balance due. After one year, full payment can be made without penalty. This act takes effect immediately upon passage.