Posted on: 21st Oct, 2009 03:21 am
Hi i just saw a property and made an offer, however something about the loan doesnt make me feel comfortable. At firest I signed a bunch of disclosures, then suddenly i get an extra doc in my bundle thats says "Demand Feature" after reading up on this, it looks like my rates will gradually increase over the months/years. I have already signed the contract and the seller but we have not yet closed. I am thinking of backing out because of this clause "Demand Feature" Can someone please advice what should be my next move?
Thank
SR
Thank
SR
Without seeing what you are reading, we can only guess as to what you are referring.
DEMAND FEATURE does not sound like anything to do with interest rates. The possible change of inetrest rates should be in paragraphs labeled "How your Rate May Change" or "Variable Rate Features", etc.
DEMAND FEATURE sounds more like "when can the lender call your loan due in full", or, when can the lender DEMAND the loan be paid. That is usually in the event of default or triggering a due on sale clause or, if the mortgage is a BALLOON MORTGAGE, the payment in full is due at the end of the balloon period.
You may very well have a mortgage with variable interest rate features, but, probably has nothing to do with a demand feature.
DEMAND FEATURE does not sound like anything to do with interest rates. The possible change of inetrest rates should be in paragraphs labeled "How your Rate May Change" or "Variable Rate Features", etc.
DEMAND FEATURE sounds more like "when can the lender call your loan due in full", or, when can the lender DEMAND the loan be paid. That is usually in the event of default or triggering a due on sale clause or, if the mortgage is a BALLOON MORTGAGE, the payment in full is due at the end of the balloon period.
You may very well have a mortgage with variable interest rate features, but, probably has nothing to do with a demand feature.