Finance
A 'due-on-sale' clause in a mortgage:
AAllows the buyer to assume the loan
BRequires the full loan balance to be paid when the property is sold✓ Correct
CReduces the interest rate upon sale
DExtends the loan term upon refinance
Explanation
A due-on-sale (acceleration) clause requires the borrower to pay off the remaining loan balance when the property is sold or transferred. It prevents buyers from assuming the original loan without lender approval.
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