Prepayment penalty

(1) The terms of a high-cost mortgage loan may contain terms under which a borrower must pay a penalty for prepayment. (a) However, a penalty for prepayment cannot be assessed more than 36 months after the loan was originally made. (b) The amount of the penalty may not exceed the total amount of interest paid at 80% of the immediately preceding six scheduled payments. (2) For purposes of this section, any method of computing a refund or unearned scheduled interest is a prepayment penalty if it is less favorable to the borrower than the actuarial method. (3) Notwithstanding Subsection (1), a high-cost mortgage may not require a prepayment penalty if: (a) the high-cost mortgage is paid with the proceeds of a new loan by the same lender or an affiliate of that lender; or (b) the penalty is prohibited under other applicable law. (4) If a prepayment does not pay the full amount owed on the high-cost mortgage when the prepayment is made, the penalty shall be reduced by a percentage equal to the percentage of the balance owed before the prepayment that remains unpaid.