topic Demand Feature in Mortgage Loans

Demand Feature

MrTom — Wed, 06 Sep 2017 16:36:09 GMT

Can someone help me understand a closing disclosure feature.

I have a closing disclosure where "Demand Feature" is checked on the loan having a demand feature.

Is this a common practice, or should I be asking more questions about this?

Re: Demand Feature

StartingOver10 — Thu, 07 Sep 2017 00:33:44 GMT

Ask more questions.

Re: Demand Feature

dragonfly66 — Thu, 07 Sep 2017 04:12:14 GMT

I would definitely ask more questions. I just got my closing disclosure today and that box isn't checked for me. I noticed mine states that the demand feature "...permits your lender to require early repayment of the loan. You should review your note for details."

Re: Demand Feature

VALoanMaster — Thu, 07 Sep 2017 15:18:15 GMT

What type of mortgage is it for?

Re: Demand Feature

me12345 — Fri, 08 Sep 2017 17:33:16 GMT

This is from the CFPB (Consumer Financial Protection Bureau) website...

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.