Chicago Title Endorsement Handbook - Chicago, IL

Non-ALTA 2006 • 283 BALLOON MORTGAGE REFINANCE ENDORSEMENT Balloon Mortgage Refinance Endorsement is available for loan policies covering residential property. This endorsement insures the lender against loss or damage arising out of the invalidity or unenforceability of the Insured Mortgage because of provisions in the Mortgage regarding a conditional right to refinance, and a change in the interest rate. In addition, this endorsement insures against loss of priority of the lien of the Insured Mortgage caused by the exercise of the conditional right to refinance, the extension of the loan term to a new maturity date and a change in the rate of interest, all as limited by the language contained in the endorsement. Prior to issuance of the endorsement, the Mortgage to be insured will be reviewed to determine, among other matters, that the provisions regarding the conditional right to refinance and the changing of the interest rate are clearly detailed in the Mortgage. Balloon Mortgage Refinance Endorsement