As inflation and high interest rates continue to stress American finances, homeowners are projected to face an 8% increase in home insurance costs by the end of 2025, reaching an average of $3,520. This financial strain can lead to mortgage delinquencies, which were reported at 3.53% by February 2025. Homeowners should be wary of the mortgage acceleration clause, which allows lenders to demand the full remaining balance upon missed payments. Understanding this clause and its triggers is critical for homeowners to protect their investments.
If a homeowner fails to fulfill the terms of their mortgage agreement, they'll receive an acceleration letter notifying them that the lender has triggered the acceleration clause.
Historically, financial strain from inflation, high interest rates, and increased insurance costs can easily lead homeowners into mortgage default.
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