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Interest Rates

Usury Laws A creditor who charges a usurious interest rate may legally lose its right to collect interest FOR THE LIFE OF THE LOAN. Criminal usury ceiling set at 25%
Defense Clause Allows for the termination of the mortgage upon full payment of the debt.
Mortgage Discharge Issued by the lender as evidence of satisfying the debt that the mortgage secures.
Dus on Sale Clause Provides that if the mortgagor transfers ownership to another perso, the amount owed to the lender is immediately due in full.
Subordination Clause States that the rights of the mortgage holder will be secondary or subordinate to a later lein or encumbrance.
Escalation Clause Allows for the adjustments of loan terms, such as interest rate and/ or payment at certain intervals to satisfy contingency.
Acceleration Clause Makes the full principal amount payable and due upon default of borrower.
Created by: Jgjg
Popular Real Estate sets




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