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HomeMy WebLinkAbout2529147-0?3911 RENEG~TIASLE RATE RI~~R Z'8IS RENEGQTIABLE RATE RIDER 3s mada this 6TFf day df JANUARY , 19 8~ and ia incorporated into and s a 1 be $eemed to amend and supplement a mortqaqe (herein "security instruiaent") dated of even date her~with, qiven by the undersiqned (herein "Borrower") to secure eorrower's Note to Heritaqe Federal Savinqs and Loan Association (herein "Lender") and coverinq the property described in said mortqaqe and IoCated at DAVIS STREET* FT. PIERCE~ FLOPI~A 33450 ( property adc#ress ) . RENEGOTIABLE RATE COVENANTS. In addition to the covenants and aqreements made in the security instrument, Horrower and Lender further covenant and aqree as follows: A. TERMS OF NOTE AND '~ORTGAGE. Borrower and Lender acknowledqe that the security instrument shall be deemed a Reneqotiable ~tate Mortgage ("RRM" ). The term of the RR'i loan is 3 years, and tt~.e tena of the mortgaqe securing said loan is 30 years. Borrower and Lender agree that the initial loan term may be up to six (6) months lonqer than later tenas . B. NOTE AUTOMATICALLY RE~IEWABLE. Borrower and Lender aqree that the Promissory Note ("~IOte") secured by the mortgage instrument is automatically renewable for a period equal to the tena of the mortgaqe instrument (up to 30 years). The interest rate may increase or decrease at each renewal of the short-term ( 3 year$) loan, which may result in an increase or decrease in tl:e amount of *he monthly payment due under the Note. C. MODIFICATIONS AT RENEWAL. Lender agrees t2~.at the only provision of said note which may be modified at renewal is the contract interest ~ate set forth therein, toqether- with any chanqe in the amount of the monthly installments of principal and interest necessary to amortize a loan with the same prihcipal and at the same interest rate over the remaining term of this mortgaqe. Borrower and ~ender agree that the interest r3te offered at renewal shall be based upon a monthly index rate computed by the Federal Home Loan Hank Board, as set forth in the Yote. Interest rate decreases and increases are mandatory and are not discretionary or optional with the Lender. D. BORROWER'S RIGBT OF REFUSAL. Borrower and Lender acknowledge that Borrower has the riqht to decline Lender's offer of renewal, in which case the reataininq balance of the unpaid principal and interest secured by the mortgage becomes due and payable upon the naturity day of the Initial Loan Term, or any Renewal Loan '!'erra, as the case r.iay be. E. *iQTIC~. At 2east ninety ~90) ~ays before the end of the Initial Loan Term and any Renewal Loan Terms, excent for the final.Renewal Loan ?'er.n, the Lender must ~end to the Borrower a renewal notice •~hich states, among ot~er 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 nay be prepaid in full or in part without ~enalty at any time. G. REt~DIES. If Borrower breaches Borrower's covenants and agreements hereunder, then Lender may invoke any remedies provided under the security instrwnent, including, but not limited to, those provided under Uniform Covenant 7. ` a~~x349 PaGE25~~ 8GOK346 P~~E 828 ~ LCS -6 9 i `,~. E :~y`:.'`11+~e~{ ~ v ~: ,J ~ ~ n _,.. _ - - ~ ~ .. + '..,; - _. . . . ;. . _.., ~. . . -..