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HomeMy WebLinkAbout1817 . ~ , . RF:NEGOTIABLE 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 PAYMEI~TS . This Renegotiable Rate Mortgage ("RRM") is made this S day of JanuaYy , 1981 , 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 date given by the undersigned (the "Borrower") to secure Borrower's RRI~t Note to INDIAN RIVER FEDERAL SAVINGS AND LOAN ASSOCIATION (the "Lender") of the same date (the "Note") and covering the propert described in the Security Instrument and located at 2400 S. Ocean ~., Ft. Pierce, Fla, 33450 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 The Note provides for an "Initial Interest Rate" which may h^_ increased or decreased on each Change Date, as described in the tiote. Changes in the interest rate are governed by changes in the "Contract Interest Rate, Purchase of Previously Occupied Homes, National Average for all i~fajor 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 Che 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- mitted limits. If this is the case, then: (A) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (B) any sums already collected 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 ar 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- ment, 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 by this Security Agreement are subject to a lien that may be a Br~K ~4~ P~Gt 1~13 ~ ~-~..~-~~~_ _.