What is a demand feature? What does it mean if the demand feature is checked off on my Closing Disclosure?
The Closing Disclosure is a new form that goes into effect on October 3, 2015.
The Closing Disclosure has a statement that reads “Your loan has a demand feature,” which is checked “yes” or “no.” If it is checked “yes,” the lender can require that you immediately pay the entire loan balance (principal and interest) at any time. The lender can make this demand on you for any reason or for no reason. Be sure to check your Closing Disclosure and promissory note for any demand features. Think carefully about whether you want to agree to a demand feature.
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