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Resources > Glossary > Rider

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2


Phonetics: rid·er    \'rī-dər\

Definition 1:
Riders (or addenda) are special attachments (separate sheets) that become part of the contract in certain situations. There could be multi-state riders, prepayment riders, adjustable rate riders, convertible adjustable rate riders, construction riders, etc.

Definition 2:
Riders are often notarized documents, so keep your eyes open when you see one, so that you can look for the notarial wording.

Definition 3:
Many lenders will have somewhat standard Deeds of Trust, and if they want to include specialized terms for a particular borrower, instead of giving them a special Deed of Trust, they will just add a Rider with the additional terms and clauses.

Definition 4:
The Adjustable Rate Rider is one of the most common types of Riders. It calculates the interest rate and monthly payments the borrower has to make with an Adjustable Rate Mortgage (ARM). The interest rate is based on the US Treasury Index at any given point in time.

Definition 5:
An arbitration rider is another common type of Rider. If a borrower signs an arbitration rider, they consent to having an arbitrator resolve all future disagreements regarding the loan rather than settle in court. Since the lender is the party that chooses the arbitrator, the arbitrator is likely to favor the lender which would not be in the borrower's best interests. Lenders often choose to include an arbitration rider in loan packages because arbitration is faster and less expensive than going to court, not to mention the fact that the arbitrator by definition biased in favor of the lender. Many people feel that you are tying your hands if you sign the Arbitration Rider.

Thesaurus / Related Terms
Adjustable Rate Rider
Arbitration Rider
Closing Accomodation Rider
Family Rider
Multi-State Rider