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RENEGOTIABLE RATE RIDER
TBIS RENEGOTIABLE RATE RIDER is made this 23RD day of
OECEM~ER , 19 8q and is incorporated into and sha~l be
~eenied to amend and supplement a mortqaqe therein "security
instrument") dated of even date herewith, qiven by the
undersiqned (herein "Sorrower") to secure Borrower's Note to
Heritaqe Federal Savinqs and Loan Association (herein "Lender")
locatedeatn~501e2503 pLt CY ANC r~ HeT F C 1 TYidF L~i^..-r' 1 DAg33a52
(property ac~dress) .
RENEGOTIABLE RA'i'E COVENANTS. In addition to the covenants
and aqreements made in the security instrument, Borrower and
Lender further covenant and aqree as follows:
A. TERMS OF NOTE AND MORTGAGE. Borrower and Lender
acknowledge that the security instrument shall be deemed a
Reneqotiable Rate Mortqage ("RRM"). The term of the RR'i
loan is 3 years, and th.e ten~ of the mo=tgaqe securing
said loan is ~30 years. Borrower and Lender aqree that
the initial loan term may be up to six (6) months longer
than later terms.
B. NOTE AUTOMATICALLY RENEWABLE. Borrower and Lender
aqree that the Promissory Note ("~Tote") secured by the
mortgaqe instrument is automatically renewable for a period
equal to the term of the mortqage instrument (up to 30
years). The interest rate may increase or decrease at each
renewal of the short-term ( 3 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 chanqe in the amount of the monthly installments o~
principal and interest necessary to amortize a loan with the same
principal and at the same interest rate over the remaining term
of this mortqage. Borrower and Lerider agree that the interest
z3te 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 optional with the
Lender.
D. BORROWER'S RIGH'" OF REFUSAL. Borrower and Lender
acknowledge that Borrower has the right to decline Lender's
offer of renewal, in which case the reaaininq balance of the
unpaid principal and interest secured by the mortgage becomes
due and payable upon the raaturity day of the Initial Loan
Term, or any Renewal Loan Terra, as the case raay be.
E. NOTICE. At least ninety (90) day~ before the end
-of~the Initial Loan Tena and any Renewal Loan Terms, excent
for the final Renewal Loan 3'erm, the Lender ~nust send to the
Borrower a renewal notice which states, among ot'~er things,
the renewal interest rate and new monthly install~ent for
the next Renewal Loan Term.
F. PREPAYMEN'~. The unpaid principal balance secured
by the security instrument ~ay be prepaid in full or in oart
without penalty at any time. '
G. REtdEDIES. If Borrower breaches Borrower's covenants
and agreements hereunder, then Lender may invoke~any remedies
provided under the security instrumPnt, including, but not
limited to, those provided under Uniform Covenant 7.
i LCS -6 9
a~x 3~6 PA~~ 2371
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