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Home My WebLink About0968 ! ~ ~ ADJUSTABLE ~i~ RII~~,R: (Payment Cap) ' . ' y j THiS ADIUSTABLE RATE RIDER ~s made this ..~fl........ da of .]~ulA~ l9...~.4.. ~ and is incorponted into and shall be dceined to amend and supplement the Mortgage. Deed of Trust, or Deed ta Securc { Debt (the •'Security Instrument") of the same date given by the undersign~ed (the "8orrower") to secu~e Borrower's s Adjustable Rate NotC to ,FIRST„UNION„ SAVINGS..A~ID . LOAN„ASSOCIATION ' (the "Lender") of the same date (the "Note") and covering the property dacribod in the Security Instrument and located at: - ......7. Q~..~~~.Gk..~d..:,,..~?z.....R~.~xGS.,...~..~~4SQ (P~opertr Address) , Th~ Nof~ co~tains provisions allowing for changes in th~ i~t~nst rot~ ev~ry ~ y~ar. If tht int~nst ~ot~ incraases, the 8orrower's monthly paym~nts will be ~ ~ hi~h~r. if fh~ intenst rof~ d~ueases, th~ Bonower's monthly payments will be low~r. Th~ dorrower aiso may b~ abie to liinit monthly paym~nt incrooses to ~ 7~ft°16 ~ach year. ADDI'iIONAL COVEIVAM'S. In addition to the covrnants and agreements made in the Security lnstrument. Borrowv and Lender further covenant and agree as follows. A. INTEREST RATE AND MONTHLY PAYMENT CHANGES * The Note provides for an initial interest rate of 2~.........9~0. Section 4 of the Note provides for changes in the interest ~ nte and the monthly payme~ts. as follows: - "4. INTEREST RATE AND MONTHLY PAYMENT CHANCFS (A) (~ange Dates ~ The interest rate 1 will pay may change on the 6rst day of July 19.85........, and on that day every 12th month thereaRer. Each date on which my interesl rate couid change is called a"Change Date." . (B) Tbe Indez - Beginning with the first Change Date. my interest rate will be based on an lndex. The "Index" is the snnu2~lized Cost of Funds Index compiled~and made available by The Federal Home Loan Bank of Atlanta. If the Indea is no longer available, the Note Hotder will choose a new index which is based upon comparable information. The Note Holder will give me notice of this choice. (C~ Caknlatioa of C6anges Befon each Change Date, the Note Holder will calculate my new interest rate by adding ..2..SD... percentage points ~ _(2..50......`~'o) to the Current Indea. The sum will be my new interest rate until the next Change Date. ~ ' 'I'he Note Holder will then determine the amount of the monihly payment that would be suflicient to repay the ~ unpaid principal balance ot my loan I am expected to owe on ihe Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation is called the "Full Payment Amount", and it ~ will be the new amount of my monthly payment unless I choose the amount permitted by Section 4(D) below. ~ (D) Borroa?er's Right to Limited Payment Amount r ~ Unless Sections 4(F~ and 4(G) below will not permit me to do so, I may choose to limit the amount of my new ; monthly payment following a Change Date to the amount I have been paying multiplied by the number 1.075. This amount ` is callod the "Limited Payment Amount." If I choose the Limited Payment Amouat, I must gi~e t6e Note Holder notice ~ tbat I am doiag so at least 15 days before my first new moathty paywent is due. (~7 Add.itions to My Uapaid Principal Balaace If I choose the Limited Payment Amount. my monthly payment could be less ihan the amount of the interest portion of a monthly payment which then would be sufficient to repay my unpaid principal balance in full on the maturity date at my current interest rate in substantially equal payments. If so. each month that the Limited Payment Amount is less than the interest portion. the Note Holder will subtract the Limited Payment Amount from the amount of the interest portion and will add the difference to my unpaid principal balance. The Note Holder will also add interest on the amount of this di}ference to my unpaid principal balance each month. The interest rate on the interesl added to principal will be the rate roquired by Section 4(C'~ above. (i~ Lidut oa UapAid Priecip~l Bslance; Increa~ed Moathly Paymeat Amount - ~ My unpaid principal balance can never exceed a maaimum amount equa) to one hundred twenty-five percent (125%) , of the principal amount I originally borrowed. My paying a Limited Payment Amount after any Change Date could cause ~ my unpaid principal balance to exceed that maximvm amount. If so. on the date ihat my paying a Limited Payment Amount would cause me to exceed that limit, I wil! instead begin paying a new monthly payment until the neat Change ~ _ Date. The new monthly payment will be in an amount which would be sufficient to repay my then unpaid principal balance ~ in full on the maturity date at my cunent interest rate in substantially equal payments. € (G) Reqaired Fnll Paymeot Amouat • E Beginning with the first monthly payment after the last Change Date, I will pay the Full Payment Amount as my monthly payment. ; (H) Etfectj~e Date of Changes. ' i My new interest rate will become eR'ective on each Change Date. i will pay the amount otmy new monthly payment ~ beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. ~ (I) Notke ot t~aoga ~ The Note Holder will mail or deliver to me a notice of any changes in the amount of my monthly payment before tt~e ; eA'ective date of any change. The notice will include information required by law to be give~ me snd also the title and s tekphone number of a person who will answer any question t may have regarding the notice." ~K ~ A~43S 969 A0~lSTA~t~ RpTE Rq~ FHLB Cos t of Funds Index Fsu o~Z-osas *The maxiin8n interest on this loan shall never exceed 15.875$. ~ . _ - ~ ~E _ Q `~~.~~~;~~a;~~,~*`~"~~'~~