Is it true you cannot be charged a prepayment penalty on a 30 year fixed loan?

No. The terms of the loan are not set this way. For example, the old subprime and Alt-A loans, many had 30 year fixed rate terms and still included a prepayment penalty.

I believe what your real estate agent was referring too is the prime mortgage market - Fannie Mae, Fredddi Mac, FHA and VA, loan typically do not have prepayment penalties included in their 30 year fixed rate loans.

Blanket statements about loan terms are very dangerous. Read the disclosures fully and never assume you know the terms until you’ve read them.

Good question…btw!