HomeMy WebLinkAbout2558RENEGOTIABLE RATE MORTGAGE RIDER
NOTICE: THF S~CURITY INSTRUMENT SECURES A RRM NOTE WNICH
CONTAINS A PROVISIOh ALLOWINC FOR CHANGES IN THE INT~REST
RATE. INCREASES IN THE INTEREST RATE MAY RESULT IN HIGHER
PAYMENTS. DECREASES IN THE INTEREST RATE WILL RESULT IN
LOWER PAYMENTS.
•'Phis Renegotiable Rate Mortgage ("RRM") is made this 4 day
of March , 14 81 _, and is incorporated into and shall be
deemed to amend anci supplement the Mortgage, Deed of Trust, or Deed
to Secure Debt (tt~e "Security Instrument") of the same date given by
the undersigned (ti~e "Borrower") to secure Borrower's RRM Note to
INDIAN RIVER FEDF.RAL SAVINGS AND LOAN ASSOCIATIOIv (the "Lender") of
tt~e~same date (the "Note") and covering the property described in
the Security Instrument and l~cated at Rivera Street. Port St. Lucie, fila.
Property Address
RRM Modificatians. Ln addition to t1~e covenants and agreeaents
made in ttie 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
be increased or ~ecreased on each Change Date, as described in the
Noc~. Changes in thF interest rate are governed by changes in the
"C~n[ract Interest Rate, Purchase of Previously Occupied Homes,
Nztional Average for all Major Types of Lenders" made available by
th~ Federal Home Loan Bank Board (the "Index"). The rate of in-
terest cannot be ci~anged to more than five percentage points higher
or lower tlian tl~e Initial Interest R~te.
If the rate of interest changes, the amount of the Bor-
r~wer's monthlv payments may change as provided i~ the Note. In-
creases in the interest rate may result in higher payr:~ents. De-
creases in tl~e interest~rate will result in lower.payments.
Tt~e amount of the monthly payments will always be suffi-
cient to zepay the loan in full in substantially equal payments by
the final payment date.
B.~ LOAN CHARGES .
It could be that a law wt~ich applies to the loan secured
b_y the Security Instrument and which sets maximum loan charges would
be interpreted s~ tt~at the interest or other loan charges collected
or to be collected in connection witl~ the loan would exceed the per-
mitted limits. If t1~is is tl~e case, then: (A) any such loan
charge shall be reduced b~ tt~e amount necessary to reduce the
charge t:, t;~ ~;ermitted li«~it; and (B1 any sums alreadv co1_lected
from Borrower wh~ch exceeded permitted limits will be ~funded [o
Borrower. I.ender may choose to make this refund by reducing the_
principal owed under the Note or by making a direct payment to
Borrower.
C. PROTECTIOti OF LIEti SUPERIORITY
Any claim,demand or charge that is ceade against property
in connection wit}~ an obligation that has not been fulfilled is
known as a"lien". B~rrower will procnptly pay or satisfy all liens
against~the Propert_y that mav be superior to all or part of the
lien of this Securitv Instr'ument. However, this Security Inst•ru=
~nent 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 Len.ier approves ti~e way in which the
$orrowe: agrees to ~ay that obligation; or (B) Eorrower, in good
faith, argues or defends against the superior li~n in a lawsuit so
that, durin~ the lawsuit, the superior lien mav not be enforced
and no part of the Property must be given up; or (C) Borrower
secures from the person ~,rho 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 tha[ all or a part of the sums secured
by this Security Agreement are subject to a lien that may be a
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