Michigan Laws 445.1635 – Mortgage loan with term less than 5 years; payment schedule
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Terms Used In Michigan Laws 445.1635
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
A mortgage loan with a term of less than 5 years shall not have a payment schedule with regular periodic payments that when aggregated do not fully amortize the outstanding principal balance. This section does not apply to loans with maturities of less than 1 year, if the purpose of the loan is a “bridge” loan connected with the acquisition or construction of a dwelling intended to become the borrower’s principal dwelling.