Contracts
An acceleration clause in a mortgage allows the lender to:
AReduce the interest rate after 5 years
BDemand the full loan balance be paid immediately upon default✓ Correct
CAccelerate the amortization schedule
DIncrease the monthly payment without notice
Explanation
An acceleration clause allows the lender to declare the entire outstanding loan balance due and payable immediately if the borrower defaults on the terms of the loan. This triggers the foreclosure process if the borrower cannot pay.
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