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ADJUSTABLE RATE RIDER
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THIS ADIUSTABLE RA'TL RIDBR i~ msde tha Sth. Dg~~anbgr,,,,,,,,,,,,,,,,,,~ ~q,$~..~
and ~ inoorponted into aad shali be deenxd to snx~d aod wpplempu the Mortpje, Dced of Tn~1. or De~d to Secure
Dsbt (~he "Security lnst'.~3AKNETT~ANK ~.r.! ~~IE...G;OUNTY~ •.Botroarcr") to sccure 8orrower's
Ad~~u~abk R.ce Nae ~o .
(the "L~mdt~") of Ihe same date (the "Note") aod cove~na the !
propeny deacribed in the Security l~utrument and located at: ' ~
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830-D imberview Drive Ft Pi r
...................:......:...........................................a..........[~r..~.~~~~Qr~~~......~ ~.4.54.............................................
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Th~ Not~ so~talns prowi:ions allowin~ io~ thany~: i~ th~ int~nst rat~ ~v~ry flv~
y~an. if fh~ int~nsf rat~ inchas~:; th~ donowf~'s monthly poym~nK wili b~
high~r. lf th~ inf~M:t rote d~cnas~s, ih~ Bonow~r•s monthly poym~nh wiit b~
low~r. The 8orrow~r also moy b~ abl~ to timit monfhty payn~~ni inc~~as~s to
7~96 ~ach y~a~.
ADDI'iIONAL COVBlVAMS. ln addition to the coveriants and agreements madc in the Security Inslrument.
Borro~rer ~nd Lender funhrr covenant and agree as follows:
A. INTEREST RATE AND MONT~~LY PAYMENT CHANGES
T'he Note provides for an initial intercst nte of .13,~ 125,,,96, Sections 4 through R otthe Note provide for changes in . ,
the interest nte and the monthly payments, at folbws: '
"4. INTEREST ItATE AND MONTHLY PAYMENT CHANGES
~
~y y g y Februar ~ 89 ~ y '
The intenst ntt 1 will ma chan e on the flrat da oi ...............................Y.......~e...... 19.............. and on that da
every bOth month therraRer. Each date on which my intercst nte oould chsng~ is callod a"Change Date."
(H? 1Le Iodex
Beginning with thc Srst Change Datq my interat rate wrill be besed on an Index. The "Indcx" is the weekiy average
yield on United Statcs Trasury sec~ritits adjustod to a constant maturity of S yean. as mede availabk by the Feden~l
Raerve Board. The moat raxnt Index figure available as of the date 4S daya beforc each Change Date is caUed the
"Current index: '
If the Index is no longer availabl~, the Note Holder wil) choose a nea? indea which is basod upon comparable '
information. The Note Holder will give me notice of this choice. -
tG7 Calculation of C6aagea `
~ Two & four tenths '
~efore each Change Date. the Note Holder wiU cakutate my new interest rate by adding percrntage points ~
~~.4......96)~to the G'~rrent Index. The Note Holder will then round.the result of this addition to the nearest one-eighth
oFone percentag~ point (0.12596). This rounded amount will be my new~interat rate until the next Change Date. ~
The Note Holder will thrn determine the amount of the monthly payment that would be sullicirnt to rcpay the :
anpaid principa! balance of my loan I am eacpected to owe on the Chsnge Date in full on the maturity date at my new ~
interat rate in substantially equal Payments. The rault of this calculation is called the "Fufl Payment Amount". and it ~
will be the new amount of my monthly payment unlas I chooae the amount permitted by Soction S(A) below.
(D) Efiectl~e Date of t~nges
My new interat rate will become etfective on each Change Data. I will pay the amount of my new monthly payment
beginning on the 6rst monthly payment date after the Change Date until the amount of my monthly paymcnt changa ~
again.
S. BORROWERS RIGHT TO LIM1T AMOUNT OF REMAINING MONTHLY PAYMENfS #
(A) Calculadop of Cndwted Mont6ty Paymeat Amouat
I may choose to limit the amount ofmy new monthly payment following a Change Date if my new interest rste
would cause the monthly paymeni 1 have been paying to increase by morc thsn sevrn and ono-half percent (7.59'0). It I
choose to 1lmjt tbe awount of my aontblr payment, I mast gi~e the Note Holder notlee that I am doiug w at least 15 days
befon my Brst aew monthly paymeat is dne. When i do so, on the first monthly payment date after the Change Date I will
begin paying a new~ monthly payment which will be equal to the amount I have ban paying each month for the preceding ~
twelve months multipliod by the number 1.075. Therafta. on each of the lint four anniversaria of the new monthly
payment date, my monthiy payment will again increase by an amount oqual to the amount i have been paying each month
for the preceding twelve months multiplied by the number 1.075.
Eree if t ha~e c6osea to Iienlt aay monthly paymeat, Sections Sl8), S(C~ and 6 belaw may require ene to pay a
difCereat amount.
(8) Reduced Montbly Paymeat Amoaat ~
My graduated monthly payment ealculatea unotr Section 5(i~ j above cuuid ix grea.z: than the amu:u~t of a mar.thly
payment which then would be su~icient to repay my unpaid principal balance in fuU on the maturity date at my current
interest rate in substantially equal payments. If so. on the date my paying a graduated monthly psyment would cause me to
pay more than th~ lower amount, I wilt instead then begin paying the lower amount as my monthly payment until the neat
Change Date.
(C~ Incre~sed Moatbiy P~yment Amoant
My paying a g~aduat~d monthly payment calculated under Section S(A) above•ooutd cause my anpaid principal
balance to exceed the limit statod in Section 7(8) below. If w. on the date that my payina a manthly p~ymrnt would cause
me to excad that limit. I witl instad begin paying a nea? monthly payment until the next Change Data The new monthly
payment will be in an amount which would be suRicient to repay my thrn unpaid princip~l b~lance in full on the maturity
date at my currcnt interat rate in substantially eQuul payments.
ADJUSTAdIE RATE RIDER-S Yta T?eowry Md~x (R)-SMpb Foe+~y-.6~83-fNMA Nnitaw leshrw~n~
gt?OK ~10 PA6E
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