When a NC lender 'calls' a loan (demands immediate full payment), it is exercising a(n):
Why Acceleration clause Is Correct
Answer A: Acceleration clause
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related North Carolina Questions
- Which type of mortgage allows the borrower to pay only interest during the loan term, with the full principal due at maturity?Finance
- A buyer's loan balance is $180,000 at 7% annual interest. What is the first month's interest payment?Real Estate Math
- A loan has a monthly payment of $1,750 and the current balance is $230,000 at 7.5% annual interest. How much of the first payment is interest?Real Estate Math
- An 'interest-only loan' in NC means the borrower's monthly payment:Finance
- A NC lender who offers a minority borrower a subprime loan with higher fees when the borrower qualifies for a prime loan has engaged in:Fair Housing
- Under TRID (TILA-RESPA Integrated Disclosure), what is the maximum number of days a lender may wait before providing a revised Loan Estimate to a borrower after a 'changed circumstance'?Finance
- A 'negative pledge' clause in a NC commercial loan agreement prohibits the borrower from:Finance
- A buyer in NC makes a 20% down payment on a $375,000 home. The lender charges 1.5 origination points on the loan. How much are the origination fees?Real Estate Math
Key Terms to Know
A lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →