Finance
A NH borrower receives a mortgage with a 'due-on-sale' clause. This clause means:
AThe mortgage automatically transfers to the buyer when the property is sold
BThe entire loan balance becomes due and payable when the property is sold or transferred✓ Correct
CThe mortgage rate increases when the property is sold
DThe lender must approve all future sales of the property
Explanation
A due-on-sale (acceleration) clause requires the full loan balance to be paid upon the sale or transfer of the property. This prevents buyers from assuming the seller's below-market mortgage without lender approval. Most conventional mortgages contain due-on-sale clauses.
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