Mortgage A Mortgage Agreement is a contract for borrowing money to purchase real estate, with the property serving as collateral for the loan.
In this Mortgage Agreement ("Agreement"), the following terms shall have the following meanings:
"Borrower" means the individual signing this Agreement as borrower and any person who assumes the borrower's obligations under this Agreement.
"Lender" means the individual or entity named in this Agreement or any person who takes a security interest in the Property to secure repayment of the Loan.
"Loan" means the principal amount to be advanced by the Lender, and interest and other amounts payable by the Borrower under this Agreement, in the principal sum of $__________ ("Loan Amount").
"Property" means the residential dwelling located at 123 Elm Street, Apartment 4B, in the city of Springfield, in the County of Greenfield, State of New York, and more particularly described in the attached Exhibit A.
2.1. Advancement of Loan.
The Lender agrees to advance the Loan Amount to the Borrower on the terms and conditions set out in this Agreement.
3.1. Interest Rate.
Interest shall accrue on the outstanding principal balance of the Loan from the date of advance at an annual rate equal to _____% per annum.
4.1. Repayment Terms.
The Borrower shall repay the Loan, together with accrued and unpaid interest, in equal monthly installments of $__________, commencing on the first day of the month following the date of advance.
4.2. Maturity Date.
The Borrower shall repay the Loan in full, together with any accrued but unpaid interest, on or before the maturity date, which shall be no later than _________ years from the date of advance ("Maturity Date").
The Borrower may, at any time and from time to time, prepay the Loan, in whole or in part without premium or penalty, provided that the Borrower gives the Lender prior written notice of the prepayment.
5.1. Mortgage Liens.
The Borrower shall grant, convey, and pledge to the Lender, as security for the payment and performance of all the Borrower's obligations under this Agreement, a valid and subsisting first mortgage lien upon the Property, in the form and substance satisfactory to the Lender ("Mortgage").
The Borrower shall cause the Mortgage to be duly recorded in the appropriate office for the recording of land title documents in the County of Greenfield, State of New York, and shall pay all fees and expenses related to such recording.
6.1. Use and Maintenance of Property.
The Borrower shall, at all times, (a) use the Property only for residential purposes; and (b) maintain and repair the Property in a good and workmanlike manner, in accordance with all applicable laws, regulations, and building requirements.
The Borrower shall maintain, at its expense, insurance on the Property acceptable to the Lender, in amounts and with insurers as the Lender may require from time to time.
7.1. Events of Default.
An event of default ("Event of Default") shall occur if (a) the Borrower fails to pay any amount due under this Agreement when due; (b) the Borrower fails to perform or observe any material covenant or obligation contained in this Agreement or the Mortgage; or (c) any event or circumstance occurs that the Lender reasonably believes could materially and adversely affect the Borrower's ability to pay or perform its obligations under this Agreement or the Mortgage.
Upon the occurrence of an Event of Default, the Lender may, at its option, declare the entire outstanding principal balance of the Loan, together with all accrued but unpaid interest thereon, to be immediately due and payable without presentment, demand, protest, or further notice of any kind, all of which are hereby expressly waived by the Borrower.
Upon the occurrence of an Event of Default, the Lender may, in accordance with applicable law, foreclose on the Mortgage, sell the Property, and apply the proceeds of the sale to satisfy, in whole or in part, the Borrower's obligations under this Agreement and the Mortgage.
9.1. Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the United States of America and the laws of the State of New York.
Any legal proceeding arising out of or relating to this Agreement or the enforcement hereof shall be commenced in the courts located in the County of Greenfield, State of New York, and the parties hereto consent to the exclusive jurisdiction of such courts and the service of process therein.
10.1. Integration; Modification.
This Agreement, together with the Mortgage, constitutes the entire agreement between the Borrower and the Lender with respect to the Loan and supersedes all prior or contemporaneous understandings or agreements, oral or written, relating thereto. No modification, amendment, waiver or consent of any provision of this Agreement shall be effective unless the same is in writing and signed by all the parties hereto.
10.2. Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of the Borrower and the Lender and their respective successors and assigns.
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In this Mortgage Agreement, you will see the following sections:
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