Family Rider Insurance

Common life insurance riders. Doodle bowling. Some of the most important life insurance riders include the accidental death rider, the guaranteed insurability rider, the waiver of premium rider, and the family income benefit rider. We think you should purchase a life insurance policy that include these riders if you can afford it.

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A mortgage rider is simply an appendix to the mortgage document. It's main purpose is to include special terms, conditions and situations affecting the loan that are not present in the main mortgage document. Lenders use pre-printed mortgage documents when preparing the loan. They require mortgage riders when the loan contains non-standard features that are not contained in the template mortgage papers. A borrower who understands what his mortgage rider means can avoid the shock of having unexpected loan terms pop up later.

Common Types of Rider

Most mortgage riders address financial terms of the loan, although some contain conditions for specific types of property. A balloon rider, for example, indicates the loan has a balloon payment, or large percentage of the principal amount, due at the end of the mortgage. Adjustable-rate mortgage riders explain that the interest rate on the loan will change on a set date. Condominium riders specify the special terms of condominium ownership, such as the percentage of interest the borrower legally owns in the shared areas, or common elements. A 1-4 Family Rider is typically used when the borrower purchases a rental property. The terms of this rider allow a lender to collect the property rent if you default on the loan. The rent the lender collects goes toward the outstanding loan balance.

Must be Signed and Dated

Mortgage riders are typically three to five pages and contain standard wording for each type of rider. Wreckfest. The borrower has to sign and date the rider, usually at the same time the main mortgage document is signed, but a notary is not required on the rider. The main mortgage loan document is already notarized, and the rider is filed behind the main loan papers. Mortgage riders are considered a legal addendum to the main mortgage document. The terms in the rider are part of the whole mortgage contract the borrower has entered into with the lender. The borrower must adhere to any terms contained in the rider and usually cannot claim she had no knowledge of the provisions in the rider if she signed it in order to receive the loan. Mortgage riders are a contingency of the loan and the borrower must sign them in order for the lender to release the mortgage funds.

Lender Explains the Terms

A mortgage rider explains the extra loan terms in a clear, concise way so the borrower may carefully consider the impact of the included provisions. The wording on a rider typically emphasizes the main function of the rider, such as bold typeface used on the word 'variable' on an adjustable-rate rider. This word emphasis is done by the lender as a courtesy and to avoid accusations from the borrower of undisclosed or hidden terms, but it is not legally required. The lender's representative also explains the mortgage rider to the borrower one final time before the loan documents are signed to ensure that the borrower understands the effect the rider has on the mortgage.

About the Author

Anna Assad began writing professionally in 1999 and has published several legal articles for various websites. She has an extensive real estate and criminal legal background. She also tutored in English for nearly eight years, attended Buffalo State College for paralegal studies and accounting, and minored in English literature, receiving a Bachelor of Arts.

Photo Credits

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