Finance
A 'due-on-sale' clause in a mortgage requires:
AThe seller to pay off all liens before closing
BThe full loan balance to be paid when the property is sold or transferred✓ Correct
CThe buyer to assume the existing mortgage
DThe lender to approve any sale of the property
Explanation
A due-on-sale (or acceleration) clause requires the entire outstanding mortgage balance to be paid when the property is sold or transferred. This prevents buyers from assuming the seller's mortgage without lender approval.
People Also Study
Related Oklahoma Questions
- A due-on-sale clause in an Oklahoma mortgage requires:Finance
- A lender's yield spread premium (YSP) in Oklahoma was historically paid to mortgage brokers for originating loans at above-market interest rates. Under Dodd-Frank, this practice:Finance
- An Oklahoma borrower is applying for a conventional loan. The lender requires private mortgage insurance (PMI) when:Finance
- An Oklahoma property sold for $495,000. The seller paid a 5.5% commission, $3,200 in closing costs, and had a mortgage payoff of $310,000. What were the seller's net proceeds?Real Estate Math
- An Oklahoma lender's loan-to-value ratio of 95% on a conventional mortgage without PMI would be:Finance
- An Oklahoma buyer's lender requires a debt-to-income ratio no greater than 43%. The buyer has gross monthly income of $5,500 and existing monthly debts of $650. What is the maximum monthly mortgage payment (PITI) allowed?Real Estate Math
Key Terms to Know
Discount Points
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Study This Topic
Practice More Oklahoma Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oklahoma Quiz →