Can Banks call a loan due?
Yes, the lenders have the option of calling the entire loan due, (due-on-sale clause) but rarely ever do. Here is why: Banks are in the lending business. They make money by lending money to you. As long as someone is making payments to them, they most likely will not call the loan due. The only time you really need to worry about lenders calling loans due, is if interest rates went up dramatically. For example, if the previous owner was locked in at 6%, and interest rates have climbed to 12%, you can bet most banks want the higher interest rate and more than likely they would call the loan due just so you would have to refinance with them. So, can it happen, yes. Will it happen, most likely not.
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