Finance

A West Virginia mortgage that requires the borrower to maintain a specific credit score throughout the loan term and defaults can be triggered by a drop in credit score is called a:

AVariable rate mortgage
BPerformance-based mortgage
CAcceleration clause trigger✓ Correct
DCovenant violation clause mortgage

Explanation

An acceleration clause allows the lender to demand full repayment of the outstanding balance upon the occurrence of specified events, such as default, transfer of title (due-on-sale), or violation of loan covenants.

Related West Virginia Finance Questions

Practice More West Virginia Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free West Virginia Quiz →