HomeMy WebLinkAbout1598 RENEGOTIABLE RATE MORTGAGE RIDER
NOTICE: THE SECURITY INSTRUMENT SECURES A RRM NOTE WHICH
CONTAINS A_PROVISION ALLOWING FOR CHANGES IN THE INTEREST
RATE. INCREASES IN THE INTEREST RATE MAY RESULT IN HIGHER
PAYMENTS. DECREASES IN THE INTEREST RATE WILL RESULT IN
LOWER PAYMENTS.
This Renegotiable Rate Mortgage ("RRM") is made this 17th day
of November 19 80 , and is incorporated into and shall be
deemed to amend and supplement the Mortgage, Deed of Trust, or Deed
to Secure Debt (the "Security Instrument") of the same.~ate given by
the undersigned (the "Borrower") to secure Borrower'g~R~tM Note to
INDIAN RIVER FEDERAL SAVINGS AND LOAN ASSOCIATION (the "Lender") of
the same date (the "Note") and covering the property described in
the Security Instrument and located at__ 525 S.E. OCednsprdy, POrt St. Lucie, FL
Property Address
RRM Modifications. In addition to the covenants and agreements
made in the Security Instrument, Borrower and Lender further covenant
and agree as follows: ~
A. INTEREST RATE AND MONTHLY PAYMENT CHANGES 1
The Note provides for an "Initial Interest Rate" which may ~
be increased or decreased on each Change Date, as described in the ~
Note. Changes in the interest rate are governed by changes in the
"Contract Interest Rate, Purchase of Previously Occupied Homes, ~
National Average for all Major Types of Lenders" made available by '
the Federal Home Loan Bank Board (the "Index"). The rate of in-
terest cannot be changed to more than five percentage points higher
or lower than the Initial Interest Rate.
If the rate of interest changes, the amount of the Bor-
rower's monthly payments may change as provided in the Note. In-
creases in the interest rate may result in higher payments. De-
creases in the interest rate will result in lower payments.
The amount of the monthly payments will always be~suffi-
cient to repay the loan in full in substantially equal payments by
'the final payment date.
B. LOAN CHARGES
It could be that a law which applies to the loan secured
by the Security Instrument and which sets maximum loan charges would
be interpreted so that the interest or other loan charges collected
or to be collected in connection with the loan would exceed the per-
witted limits. If this is the case, then: (A) any such loan
charge shall be reduced by the amount necessary to reduce the
f charge to the permitted limit; and (B) any sums already collected 5
from Borrower which exceeded permitted limits will be refunded to
Borrower. Lender may choose to make this refund by reducing the
principal owed under the Note or by making a direct payment to
Borrower.
C. PROTECTION OF LIEN .SUPERIORITY
Any claim,demand or charge that is made against property
in connection with an obligation that has not been fulfilled is
known as a "lien". Borrower will promptly pay or satisfy all liens
against the Property that may be superior to all or part of the
lien of this Security Instrument. However, this Security Instru-
ment does.not require Borrower to satisfy a superior lien if (A)~
Borrower agrees, in writing, to pay the obligation Which gives rise
to the superior lien and the Lender approves the way. in which the
Borrower agrees to pay that obligation; or (B) Borrower, in good
faith, argues or defends against the superior lien in a lawsuit so
that, during the lawsuit, the superior lien may not be enforced
and no part of the Property must be given up; or (C) Borrower
secures from the person who holds the superior lien a written agree-
went, approved by Lender, that the lien is inferior to the lien of
this Security Instrument.
If Lender concludes that all or a part of the sums secured 3
by this Security Agreement are subject to a lien that may be a
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