I live in New Jersey. When I applied for a mortgage I was told about early payoff penalties. When I resisted I was told by the mortgage consultant that the state of New Jersey prohibited penalties for early payoff and I didn't need to worry. Upon closing I was asked to sign a form explaining the penalty. Can anyone tell me if it is true that New Jersey prohibits such behavior. I have 3 days to cancel the deal.

I Google "prepayment penalties NJ" and came up with this article:

New Jersey Real Estate Report » Welcome back prepayment penalties (http://njrereport.com/index.php/2007/04/29/welcome-back-prepayment-penalties/)