PREPAYMENT PENALTY IN SOUTH CAROLINA
Does anyone know for sure if prepayment penalty is allowed in South Carolina? thanks.
no
In exactly what context are you inquiring of prepayment penalties? What type of loan are we referring to? For example, the South Carolina High Cost Mortgage and Consumer Home Act of 2003 prohibits a lender from charging a prepayment penalty on loans under $150,000 provided the home loan does not have an annual percentage rate that exceeds the conventional mortgage rate by more than two percentage points; and does not permit prepayment fees or penalties that exceed two percent of the amount prepaid. Also, you may reference the Alternative Mortgage Transaction Parity Act (“AMTPA”) of 1982. As implemented by Congress, this act preempted state statutes regarding alternative mortgage transactions defined as transactions that are not of a conventional fixed rate/term. South Carolina chose to exercise its right to opt out of AMTPA preemption.