Clarifies mortgage loans to mean loans made primarily for personal, family, or household purposes.

This bill clarifies that a "mortgage loan" refers specifically to loans made primarily for personal, family, or household purposes, secured by residential properties (1-6 dwelling units). It directly affects homebuyers and renters with standard mortgages by exempting these loans from prepayment penalties, meaning borrowers can pay off their loans early without extra fees. The key mechanism updates the legal definition to ensure consumer loans (not commercial ones) cannot include prepayment penalties, while allowing such fees for commercial mortgage loans. This applies to all new mortgage loans entered into after the bill's effective date.