Kansas Amends Prepayment Penalty Provision on Home Loans

Kansas recently amended its statute prohibiting certain prepayment penalties on “home loans” to specify that the prohibition only applies to home loans “made primarily for personal, family or household purposes.”  Prior to this amendment, the statute applied more broadly to “home loans” regardless of purpose.  Other statutory language regarding the prohibition also was amended, but it continues to prohibit assessing a prepayment penalty more than six months after the note’s execution.

This change is effective on July 1, 2026.