Washington State Real Estate Practice Exam 2026 – All-in-One Guide to Master Your Real Estate License!

An acceleration clause is a provision in a mortgage that declares the full amount of principal and interest due immediately if the borrower defaults on their loan. This means that if the borrower fails to make timely payments or violates any other terms of the mortgage agreement, the lender can demand the entire loan amount to be repaid in full. This is different from option A, which allows the borrower to defer payments in case of financial hardship, and option D, which permits early repayment without penalty. Option B, which mentions increasing the interest rate after a specified period, is incorrect because that would be known as an "adjustable-rate mortgage," not an acceleration clause.