An acceleration clause is a loan provision giving the lender the right to declare the entire amount immediately due and payable upon the violation of a specific provision of the loan, such as failure to make payments on time.
A provision in a mortgage that allows some of the property pledged to be freed from serving as collateral when certain conditions are met.
A rate cap refers to a predetermined limit placed on the increases and decreases in the interest rate for an adjustable-rate mortgage (ARM), providing a level of protection to the borrower against significant rate changes.
