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HomeMy WebLinkAbout0932 City Affordable Mortga~e Plan Graduated Psym•nt and Adjustable Rate Loa~ Rider , ' ti`a . :~~-.`L.~,: s Notice: The secu~ity insfrument secures a Note which contains provisions that: (1 ~ Caus~ the inte~est rate to cAsn~s p~riodically bas•d on chanyei fn an Indax. Ths Borrow~r's sch~duled monthly payment wlll also chanqe periodicalty. (2) Cause the BoROwer's monthly payments to bs ~educsd for ths fint 3 yean of 1he lo~n. ~~~~l~R4~ e~ift~iu~Mle~t~ ~[etatna~4c ~Yatd]! Y~cm~n[~ tk![i[iac~• (3) Allow th~ outstanding principal balanc~ of th~ loan to increass ovsr tima. This wlll hapi?en if the achsdulsd monthly payment is - not large enou~h to pay all of th~ intersst due snd the Lender lends th~ Borrowsr the diNortnce und~r the tarms of the Note. This Rider is made this 1 dth day of _~a~~ ~ 9 and is incorporated into, and shall be deemed to amend and supplement the Mortgage, Deed of TrusL or Deed to Secure Oebt (the " ecurity Instrument") of the same date given by the undersigned (the "Borrower") to secure Bor~ower's Note to City Federal Savings and loan Association (the "Lender") of the same date (the "Note"? and covering the property described in the Security Instrument and located at ~~~at~~.~oRr~~_wrsE,~LOain~~a - - - - - - - Modifications. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lenderf urther covenant and agree as follows: , fi. Interest Rate Changes The Note has an"In~tlal Interest Rale" of __11-_87~6- The Note interest rate may be increased or decreased on the hrst day of the month beginning on 19_ __$4_, and on that d8y of the month every_._fi months thereafter. The dates on which the interest rate may change are called the `•Interest Rate Ghange Dates." Changes in the interest rate will be based on changes in a measure of the cost of money called the"Inde~t'. The Index will be stated as a percentage figure. The Index at the beginning of this loan is the one tollowing the box which is marked: Q The average discount rate on twenty six week Treasury Bills as anr.ounced by the U. S. Treasury Department following its sale of these S@CUfItiBS . ? The weekly average yield on United States Treasury Securities adjusted to a constant maturity of years as published by ihe Federal Reserve Board in Statistical Release H-15 (519) pubtished weekly. ? - - - - - - - - - The Lender may substitute a new measure of the cost of money as the Index if at any time the Index being used ceases to be publicly annour.ced by its source. The substituted Index will t~e used to determine changes in the irterest rate beginning with the first interest rate change after the substitution. Any substituted Index will be beyond the controi of the Lender and readily verifiable by Borrower. To set each new interest rate, the Lenderwill first determine the"Current Index" fic~ure. The Current Index figure is thetigure most recently available on each Interest Rate Change Date, unless Borrower's monthly payment is schedu!ed tochange w+thin 45 days after the Interest Rate Change Date. If that is the case, the Current Index figure ~s the figure most recently available when the notice of monthly payment adjustment provided in Section 5(D) of the Note is given. The Lender will round up the Current Index figure to the nearest one eighth of one percent (.125qb). The Ler~der wi~l add the amount of to the Current Index figure. The result of this addition will be the new interest rate. ~ B. Monthly Rayment Changes: Capitalized Interest The secured indebtedness is payable in monthly installments. Monthly payments wi11 be applied first to the interest due ar.d then to [ principal The interest due may be greater than the current amount of Bor+ower's scheduled monthly payment. In that case, the interes? due which is greater than the Sorrower's scheduled monthly payment w~ll be advanced on Borrower's account b/ Lender and added to thE ~ outstanding principal balance under the Note, unless otherwise paid by Borrowec S~~ch cap~talaed interest is part of the indeotedness tor which the Security Instru~ent secures repayment t Borrower's monthly payment for the first year will be in the amount of U. S. S____~~Q~~__ ~ Borrower's monthly payment will be reset on the l~c t_ day of _ tor the first __3_ years so that Second year monthly payment amount wili be U.S. $ 7Q(1 9~ ~ Third year monthly payment amount will be U. S. S 740. 25 ~ Fourth year monthly payment emount will be U. S. 5-_ ~ Fifth year monthly payment amount will be U. S. 5 ~ Sixth year monthly payment amount will be U. S. 5 _ ~ Seventh year monthly payment amount will be U. S. 5 - Eighth year monihly paymant smount will be U. S. S ~ Ninth year monthly payment amount will be U. S. 5 ~ Tenth year monthly paymant amount will be U. S. S ~ - - ~ t On ~FPTFMRFR 1 , 19 and on that day in th~t month each ~ years thereatter (the "Monthly ~ Payment Adjustment Date"); Borrower's monthly payment will also be reset In resetting the monthly payment en those dates, the Lender : will determine the amount of the monthy payment on the basis of the following factors: ~ _ (a) the outstanding principal balance, and (b) the then current interest rate, and ~ (c) the remaining term of the loan. € The Lender will set the monthly payment at an amount which would be sufffcient to pay the loan in full over its remaining term assuming the ~ then current interest rate dnes not change. In addition, the lender may increase the Borrowers monthly payment at any time (a~the total of ~ the amourst of interest capitalized as provided above since the beginning of the loan plus(b) the amount paid to Borrower or on Borrowers ~ beha?f as of loan settlement equals the amount of Borrowers principal indebtedness stated on the first page ot the Security Instrument ~ C. Loan Chaross ~ It could be that the loan secured by the Security Instrument is subject to a lawwhich sets maximum loan charges and that law is interpreteo ~ so that the interest or other loan charges collected or to be collected in connection with the losn, woufd exceed permitted limits. If this is - the case, then: (A) any such loan char9e shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (B) any ~ sums already coUected from Sorrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note, or by making a direct payment to Borrovrer. C03 t 5-M-0192 1 d 2 ~ B07K `filU P~ eQe~I ~ - - . ~ _ ~ ` ~s~.;~ , _ ~ ~ ~