Under Rhode Island law, a borrower may prepay a purchase loan without penalty:

Under Rhode Island law, the correct scenario allows a borrower to prepay a purchase loan without penalty at any time during the loan. This provision is designed to provide borrowers with flexibility and the opportunity to pay off their loans sooner without incurring additional costs, which is particularly advantageous in changing financial situations or interest rate environments.

Some options specify certain time frames or conditions under which prepayment penalties might apply, but these interpretations do not align with the provisions found in Rhode Island’s mortgage laws. Rather, the law emphasizes that borrowers have the right to manage their loans effectively, allowing for greater financial freedom and the potential for cost savings over time.