Skip to main content

About us

We're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly.

Learn how the CFPB can help you

Can I be charged a penalty for paying off my mortgage early?

Whether you can be charged a penalty for paying off your mortgage early depends on what type of mortgage you have and the specific terms of your mortgage loan.

Some loans have pre-payment penalties during the first years of the loan. These fees may impose substantial costs on homeowners with adjustable rate mortgage loans who want to refinance before their rates increase, and some fixed mortgages have prepayment penalties as well.

Many states have laws that limit the amount or duration of these penalties. Whether your loan carries a prepayment penalty must have been disclosed in your loan documents. Sometimes it is only disclosed in something called the “Addendum to the Note” – look at the Note and anything with “Addendum” in the title.

Was this page helpful to you?

Note: Do not include sensitive information like your name, contact information, account number, or social security number in this field.

The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.