Due-on-sale clause,

Definition of Due-on-sale clause:

1. A due-on-sale clause is a provision in a mortgage contract that requires the mortgage to be repaid in full upon a sale or conveyance of partial or full interest in the property that secures the mortgage. This provision as also sometimes referred to as an acceleration clause. Mortgages with a due-on-sale clause are not assumable. This clause helps protect lenders against below-market interest rates.

2. Provision in most conventional mortgage agreements that prevents a subsequent buyer of a property from assuming the mortgage at the original interest rate. Under this clause, the full balance on mortgage must be paid when the property is sold and the new owner must negotiate a new loan at new (usually higher) interest rates.

3. A due-on-sale clause helps protect the lender, or the ultimate mortgage holder, from the risk that the mortgage may be transferred to the new owner of a property when the rate on the mortgage is below current market interest rates. This would extend the life of the mortgage. The holders of a below-market-interest-rate mortgage – or a mortgage-backed security, asset-backed security or collateralized debt obligation backed by a below-market-interest-rate mortgage – generally favor early retirement of that mortgage.

Due-on-Sale Clause,

Due-on-Sale Clause Meanings:

• Due-on-Sale Clause means,

  The liability clause is part of your mortgage agreement which requires you to repay the loan balance if you sell your property before repaying the mortgage. This is sometimes called the accelerator clause.

Literal Meanings of Due-on-Sale Clause

Due:

Meanings of Due:

1. Those who are entitled to it are entitled to it.

2. (Based on compass point) Absolutely straight.

Sentences of Due

1. Left south again on the same road.

Synonyms of Due

awaited, levy, precisely, meet, required, recompense, anticipated, satisfactory, ample, squarely, undeviatingly, entitlement, rights, proper, expected, payment, exactly, requisite, deserved fate, just deserts, apt, straight, fee, adequate, plumb

On:

Meanings of On:

1. Make it part of a marked feature or surface.

2. By transferring or storing information with (usually after an indefinite name).

3. During the journey).

4. Details of the day or part of the day when an event occurs.

5. Take regularly (drugs or medicines).

6. Are physically touched and carried off the surface.

7. Indicates the continuity of an action or process.

8. (An event) that is happening or during a presentation.

9. (From an electrical appliance or power supply).

10. Formation of the names of subatomic particles or quanta.

11. Creates a name that represents the molecular unit.

12. Name formation for substances

Sentences of On

1. A few cents on your electricity bill is nothing compared to your security.

2. What's new in the May festival?

Synonyms of On

without a pause/break, for a long time, in use, in operation, working, functioning, ceaselessly, interminably, operating, endlessly, at length, continuously

Sale:

Meanings of Sale:

1. Time for a store or retailer to sell a product at a discount.

Sentences of Sale

1. We withdraw from the sale.

2. January sales begin this week.

Synonyms of Sale

bargain, transaction, deal, selling, trading, vending, disposal, bargaining, dealing

Clause:

Meanings of Clause:

1. The organizational unit of grammar, which is located just below the sentence in the line, and traditional grammar should consist of an article and a prediction.

2. Articles, terms or conditions that are set out and separate from an agreement, law or agreement.

Synonyms of Clause

point, article, heading, proviso, section, passage, rider, provision, note, part, paragraph, specification, item, stipulation, subsection, condition, requirement