An agreement modifying a loan agreement and mortgage should be signed by both parties to the transaction and recorded in the office of the register of deeds and mortgages where the original mortgage was recorded. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
A Wisconsin Agreement to Modify Interest Rate on Promissory Note Secured by a Mortgage is a legal document that allows parties involved in a mortgage contract to make changes to the interest rate stipulated in the original promissory note. This modification can be agreed upon by both the borrower and the lender, with the terms and conditions outlined in the agreement serving as the basis for the new interest rate. In Wisconsin, there are two primary types of agreements to modify interest rates on promissory notes secured by a mortgage: fixed-rate modifications and adjustable-rate modifications. 1. Fixed-Rate Modification: This type of agreement is entered into when both parties agree to establish a new fixed interest rate for the remainder of the mortgage term. This modification is popular among borrowers who prefer consistent monthly payments and want to avoid the uncertainty associated with fluctuating interest rates. 2. Adjustable-Rate Modification: In contrast to fixed-rate modifications, this type of agreement allows for changes to the interest rate over time. The new interest rate is typically based on a predetermined index, such as the prime rate or LIBOR, plus a margin. Lenders and borrowers usually agree on adjustment periods and limits to ensure gradual and predictable changes in interest rates. Wisconsin Agreement to Modify Interest Rate on Promissory Note Secured by a Mortgage generally includes the following key elements: 1. Parties involved: The agreement identifies the borrower (mortgagor) and the lender (mortgagee). 2. Original mortgage details: It includes the details of the original promissory note and mortgage, such as the loan amount, original interest rate, and repayment terms. 3. Modification terms: The agreement clearly outlines the changes to be made, including the new interest rate, effective date, and any adjustment provisions (in the case of adjustable-rate modifications). 4. Legal validity: The document includes a clause stating that the original mortgage remains in full force and effect, except for the specific modifications mentioned in the agreement. 5. Representations and warranties: Both parties may include statements declaring that they have the legal authority to enter into the agreement and that the information provided is accurate. 6. Governing law: As it is specific to Wisconsin, the agreement states that it is governed by Wisconsin state laws. 7. Signatures and notarization: The agreement requires the signatures of both the borrower and the lender, which may need to be notarized to ensure authenticity and validity. In conclusion, a Wisconsin Agreement to Modify Interest Rate on Promissory Note Secured by a Mortgage enables borrowers and lenders to make changes to the interest rate originally agreed upon in a mortgage contract. The agreement can take the form of a fixed-rate modification or an adjustable-rate modification, each with its own distinct features. It is imperative for all parties to fully understand the terms and conditions outlined in this legally binding document before signing.
