While I understand the second mortgage is forgivable after 5 years, when would a teacher be required to payoff the $7,500 second mortgage

While I understand the second mortgage is forgivable after 5 years, when would a teacher be required to payoff the $7,500 second mortgage?

Payment would be required if any of the following occurs within 5 years of the closing date:

  • Ceases to reside in the property
  • Prepays or refinances the first mortgage
  • Sells, transfers or otherwise disposes of the property

The loan payoff calculation is $166.67 for each full month remaining on the loan term.