An acceleration clause is a provision clearly stated in a contract (mortgage) that grants a lender (mortgagee) the right to immediately recall a loan or demand full repayment of the outstanding loan balance amount owed.

It can be triggered upon an act that the lender deems as a breach of contract, like a default.

For example when a property is sold by the owner, defaults on installment repayments, fraudulent documentation, false credit declarations, property value depreciates to less than amount owing, etc read more

Choosing the term of a home loan is one of the big decisions a borrower has to make when taking up a mortgage.

There is conventional wisdom with both choices.

Taking on a shorter term will enable the homeowner to pay off the loan faster and save more money on interest charges during the process. read more

A demand clause found in a note give a lender the right to demand full repayment of the loan balance without requiring any conditions to be met.

For a lender a demand clause will be preferred to an acceleration clause as it give them more power and control over the borrower’s credit facility.

In fact, it’s not far fetch to suggest that this is as good as absolute power. read more

As the name implies, a biweekly is basically a mortgage setup that requires a borrower to make half of the monthly payments every 2 weeks.

While this arrangement can seem like a simple act, it has significant positive repercussions.

Making payments once every 2 weeks results in 26 payments a year. read more