HomeMy WebLinkAbout108514T 024013
RENEGOTIABLE RATE RIDER
THIg gENEGOTIA8L8 RATE RIDER is made thia lOTH day af
FE6RUARY , 19E1~ and is incorporated into and-s~iatl b•
$smnac~ to ara~nd and suppl~mont a mortqaqe (hersin "ascurity
inatrumant") dated o! sven date herewith. qivan by the
undersiqned (herein "Sorrower") to s~cura Horrower's Note to
Heritaqe Feder~l Savinqs and Loan Association (herein "Lender")
aad coverinq ths property described in said mortq~~e3~452
located at LOT 18, TATUM TERRACE, PORT ST. L11CtE,
(property ac~dress) .
RENEG(?TiAHLE RATE COVENANTS. In addition to.the covenants
a~nd aqreements made in the security instrument, Borrower and
Lender further covenant and aqree as follows:
- A. TERMS OF NOTE AND MORTGAGE. Horrower and Lender
acknowledqe that the security instrument shall be deemed a
Reneqotiable ?tate Mortqaqe ("RR~:" ). The term of the RRy
loan is 3 years, and tY~.e terr.t of the mortqaqe securing
said loan is 30 years. Borrower and Lender agree that
the initial loan term inay be up to six (6) months longer
than later tezzas .
B. NOTE AUTOMATICALLY RENEWABLE. Borrower and Lender
aqree that the Promissory Note ("Vote") secured by the
mortqaqe instrwment is automatically renewable for a period
equal to the term of the mortqaqe instrument (up to 30
years). The interest rate may increase or decrease at each
renewal of tY~e short-term t ~ yenrs) ~ loan, which may
result in an increase or decrease in the aawurit of the
monthly payment due under the Note.
C. KODIFICATIONS AT I~ENEWAL. Lender aqrees that the
only provision of said note which may be modified at renewal
is the contract interest rate 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
principal and at the same interest rate over the remaininq term
of t1~is mortgaqe. Borrawer and Lender aqree that the inte=est
z3te offered at renewal shall be based upon a nwnthly index
rate computed by the Federal Home Loan Bank Board, as set
forth in the Note. Interest rate dscreases and increases
are mandatory and are not discretionary or optional with :he
Lender.
D. BORROWER'S RIGH'^ OF REFUSA.L. Borrower and Lender
acknowledge that Borrower has the right to decline Lender's
offer of renewal, in which case ~he renaininq balance of w'~e
unpaid principal and interest secured by tr.e mortqaqe becomes
due and payable upon the ~aturity day of the Initial Loan
:'erm, or any Renewal I.aan Tertn, as the case r:tay be.
E. :tOTICE. At least ninety (90) days before the en~
of the Initial Loan Term and any Renewal Loan Terms, excent
for the final Renewal Loan Term, the Ler.der must send to the
Borrower a renewal notice which states, amonq ot`~er thinqs,
the renewal interest rate and new monthly installment for
the next Renewal Loan ':erm.
F. PREPAY.'~NT. The unpaid principal balance secured
by the security inst--ument ~ay be prepaid in full or in part
without penalty at any time.
G. REt~EDIES. If Borrower breaches Borrower's covenants
and agreements hereun3er, then Lender may invoke any remedies
provided unde~ the security instrumPnt, includinq, but not
limited to, those provided under Unifor.a Covenant 7.
LCS -6 9
~~. .~. :..; ~: ~V F
. ~~x~~'~~i'`~~-,~7~-'FSti_~-»z .
8~348 ~A~E1085
- ,~ , ~. -:~
. se:a.~~~" -