Contracts
An 'acceleration clause' in a Missouri mortgage means:
AThe interest rate increases over time
BThe entire loan balance becomes immediately due upon default or transfer✓ Correct
CPayments increase annually
DThe lender can increase the principal balance
Explanation
An acceleration clause allows the lender to call the entire remaining loan balance immediately due upon the occurrence of specific events, most commonly borrower default or unauthorized transfer of the property.
Related Missouri Contracts Questions
- Consideration in a Missouri real estate contract can consist of:
- A Missouri purchase contract's 'merger clause' (also called an 'integration clause') provides that:
- A lease-option in Missouri gives the tenant:
- Which of the following best describes 'specific performance' as a remedy in Missouri real estate?
- A Missouri contract is voidable when:
- Under the Missouri parol evidence rule, oral agreements made before a written contract:
- An escalation clause in a Missouri purchase offer allows the buyer's offer price to:
- An 'earnest money' deposit in a Missouri contract serves as:
Practice More Missouri Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Missouri Quiz →