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Interest Rates
| Term | Definition |
|---|---|
| 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. |
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