Is there a law against the charging of prepayment penalty in the state of New Jersey?

I am assuming you mean a prepayment penalty for paying off a mortgage early? If that is what you are talking about then yes, prepayment penalties are outlawed in NJ. No mortgage note should have any prepayment penalty associated with it in NJ.

I do believe that there is a limitation on this though that the interest rate for the mortgage must e above 6%. Depending on when the loan was made, there is a good chance that the rate could be below 6%.

Good Luck!

There always is a prepayment and if she missed that prepayment- there is a penalty.

How is it against the law? She picked and signed her name to that mortgage. Perhaps he or she should have done more research about mortgages. I think Balloon mortgage should be against the law because too many dumb people buy houses they can't afford and end up losing them- but that's their choice.