HomeMy WebLinkAbout1660 RENEGOTIABLE RATE RIDER
THIS RENEGOTIABLE RATE RIDER is made this 3rd day of
October , 19 8Q and is incorporated into and s3iall be
eeme to amend and supplement a mortgage (herein "security
instrument") dated of even date herewith, given by the
undersigned (herein "Borrower") to secure Borrower's Note to
Heritage Federal Savings and Loan Association (herein "Lender")
and covering the property described in said mortgage and
located at 2101 Sunfflower St., Port St. Lucie, Florida 33452
(property ad ress .
RENEGOTIABLE RATE COVENANTS. Ih addition to the covenants
and agreements made in the security instrument, Borrower and
Lender further covenant and agree as follows:
A. TERMS OF NOTE AND MORTGAGE. Borrower and Lender
acknowledge that the security instrument shall be deemed a
Renegotiable Rate Mortgage ("RRM"). The term of the RR"i
loan is 3 years, and the term of the mortgage securing
said loan s~ 30 years. Borrower and Lender agree that
the initial loan term may be up to six (6) months longer
than later terms.
8. NOTE AUTOMATICALLY RENEWABLE. Borrower and Lender
agree that the Promissory Note ("Vote") secured by the
mortgage instrument is automatically renewable for a period
equal to the term of~the mortgage instrument (up to 30
years). The interest rate ma~ increase or decrease at each
renewal of the short-term ( years) loan, which may
result in an increase or decrease in the amount of the
monthly payment due under the Note.
C. MODIFICATIONS AT RENEWAL. Lender agrees that the
only provision of said note which may be modified at renewal
is the contract interest rate set forth therein, together
with any change in the amount of the monthly installments of
principal and interest necessary to amortize a loan with the same
principal and at the same interest rate over the remaining term
of this mortgage. Borrower and Lender agree that the interest
II rate offered at renewal shall- be based upon a monthly index
rate computed by the Federal Home Loan Bank Board, as set
forth in the Note. Interest rate decreases and increases
! are mandatory and are not discretionary or op
iot nal with the
Lender.
D. BORROWER'S RIGHT OF REFUSAL. Borrower and Lender
acknowledge that Borrower has the right to decline Lender's
offer of renewal, in which case t_he remaining balance of the
unpaid principal and interest secured by the mortgage becomes
due and payable upon the maturity day of the Initial Loan
Term, or any Renewal Loan Term, as the case may be.
E. NOTICE. At least ninety (90) days before the end
of the Initial Loan Term and any Renewal Loan ?'erms, except
for the final Renewal Loan Term, the Lender must send to the
Borrower a renewal notice which states, among other things,
the renewal interest rate and new monthly installment for
the next Renewal Loan Term.
F. PREPAYMENT. The unpaid principal balance secured
by the security instrument may be prepaid in full or in part
without penalty at any time.
G. REMEDIES. If Borrower breaches Borrower's covenants
and agreements hereunder, then Lender may invoke any remedies
provided under the security instrument, including, but not
limited to,-those provided under Uniform Covenant 7.
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