HomeMy WebLinkAbout0277RENEGOTIABLE RATF MORTGAGE RIDER
NOTICF: TH£ SECURITY INSTRUMENT SF.CURES A RRM NOTE WHICH
CONTAINS A PROVISION ALLOWING FOR CHANGF.S IN THE INT~REST
RATE. INCREASES IN THE INTEREST RATE MAY RESULT IN HIGHER
PAYMENTS. DECREASES IN TNE INTEREST RATE WILL RESULT IN
LaWER PAYMENTS.
Tiiis Renegotiable Rate Mortgage ("RRM") is made this 8th day
of Januarv , 19 81 , and is incorporated'into and shall be
deemed to amend and supplement the Mortgage, Deed of Trust, or Deed
to S~~cure Uebt ithe "Security Instrument") of the same date given by
the undersigned (the "Borrower") to secure Borrower's RRM Note to
INDIAN RIVER FEDFRAL SAVINGS AND LOAN ASSOCIATION (the "Lender") of
the same date (the "Note") and covering the propert.y described in
the S~ecurity Instrtiment ~nd located at 2400 S. Ocean I1r.* Ft. Pierce. I~l. .
Property Address
RRM Modifications. In addition to the covenants and agreements
made in the Security Instrument, Borrower and Lender further covenant
and agree as follaws: ' ~
A. INTEREST -RATE AND MONTHLY PAYMEI~T CHANCES
The Note provides for an "Initial Interest Rate" which may
be increased or decreased on each Change Date, as described in the
Note. Changes iti the in[erest rate are governed by changes in the
"Contract Interest Rate, Purchase of Previously Occupied Homes,
National Average Eor all Major Types of Lenders" made available by
the Federal Home Loan Bank Board (the "Index"). The rate of in-
[erest cannot be changed to more than five percentage po:ints higher
or luwer ttian the Initial Interest Rate. •
If the rate of interest changes, the amount of the Sor-
rower's montt~ly payments may change as provided in the Note. In-
creases in ti~e interest rate may result in higher payments. De-
creases in ttie interest rate will result in lower payments.
Ti~e amount of the monthly pa_yments will always be suffi-
cient [o rc~pay the loan in full in substantially equal payments by
the f inal paymettt date.
B. LOr1I3 CHARCES
It could be ttiat a law wtiich applies to the loan secured
by the Security Instrument and wt~ich sets maximum loan charges would
be inLerpreted 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 ttie c.ase, then: (A) any such loan
charge shall be reduced by the amount necessary to reduce the
charge to the permi[ted limit; and (B) any sums already collected
from Borrower whicti exceeded permitted limits will be refunded to
Borrower. Le!~der may choose to make this refund by reducing the
principal owed under [he Note or by c~aking a direct payment to
Borrower.
C. PROTECTIOI3 OF LIEN SUPERIORITY '
Any claim,demand or charge thai 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 ta all or part of the
lien of tt~is S~curity Ins[rument. However, this Security Instru-
ment does not require Borrower to satisfy a superior lien if (A)
Borrower agrees, in writing, to pay tt~e obligation which gives rise
to the superior ]ien 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 tt~e lawsuit, [he 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, thaC the lien is inferior to the lien of
this Security Instrument.
If Lend~r concludes that 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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