HomeMy WebLinkAbout0924 CONVERTIBLE ARM RIDFR ' ~
(INTEREST RATE LIMITS)
THIS CONVERTIBLE ARti1 RIDER is made this .~.4TH......., day of .SEPTEMBER , 19 84 ,
and is incorporated into and shaU be deemed to amend and supplement the Mortgage, I)eed of Trust, or Deed to Secure
Debt (the "Security Instrument") of the same date given by the ~ndersigned (the "Borrower") to sc~;ure Borrower's !
Adjustable Rate Note (the °Note'~ to HARBOt~ FEOERAL SAVINGS AND LOAN ASSOCIATION (the "Lende~ of
the same date and covering the property described in the Security Instrument and located at
680 SE CHAPMAN AVENUE PORT ST I~UCIE, Fl.. 33452
;
IProp~rty Address) -
The Note contains provisions allowing for changes in the interest rate. If the interest rate
increases, the BoROwer's monthly payments will be higher. If the interest rate decreases,
the Borrower's monthiy payments will be lower. On the first Change Date, BoROwer may
convert the adjustable rate loan into a fixed rate, ievel payment, fully amoKizing loan.
ADDITtOti~L Co~'E~.ay7s. In addition to the ~o~cnant and agreements made in the Sc~urity In~trument, Borr~H~er and
Lender further covenant and agree as follu~cs:
A. INTEREST RATE AtiD MOtiTHLl' PAl'MENT ('NAtiGF;ti '
The Note provides for an initial interest rate ot .......1J..SQQ .................~'o. Sr~tiun -1 oC the N~~tr ~r.~~idc~ ior rhanges in
the interest rate and the monthl}• pa~•mentti, a~ follo~~,:
4. /:``TFRf:ST RATE'.-t.\'!) :11O~~THI.?' P.-t )'111: ~'T (~!l.-1 ~G/-:1
(A) Change Dates
~ 1 ST. OCTOBER R4
The interest rate 1 will pay ni~?y chanee on the c1a~ ut ly---... o~
~ that day of the month e~~en~ .....~.2
...................n~unth~ th~r~at!~r. f arh eiatr ~~n ~~i~i~h i~i~ interc~t ra~e ~uuld rhange is
; cailed a "Change Date."
(B) The lndex
f
f Beginning w~ith the first Change Uate, m~ interc,t rat~ ~~ill hr ha.c~1 ~~n an "Incie~." Thr Inde~ i, the ~+eekiy a~erage
~ yield on United States Treasur~~ securitie~ adjusted to a rc~n~tant maturit~ ~~f }ear~, ati made a~~ailable
i by the Eederal Reserve Board. The mo,t reren[ lncir. fi~ure a~ailahle a. uf -i> da~~ hefore ea:h Chan~e Date i~ ralled the
~ "Current Index."
~ If the index is nu longer a~ailable, the !~~~te H~~Ider ~+ill ~h~x~.~ a n~~. inde~ ~~hi:ti i. ba~cci u~on iomparable
F information: The Note Holder ~cill gi~e me noti~e «f it. ;:hui~~.
~ (C) Calculation of Chan~es
~ T410 A N D
t ~~r~~ach Change Date. the Nute Halder ~~ill ~al~ulat~ nb~O~r~~ int~r~'t ra~e b~ a~ldinti
~ per~rnta~~ puint, ~l t~~ th~ Curr~nt Ineie~. The sum ~tiill be m}~
new interest rate.
x
~ The Note Holder will then determine the amount al thc munthl~ ~aym~nt that ~~ould be,uffi~irn[ to rcpa}~ in full
g the principal 1 am expecred to ow~e on the Change Date in ~ubtitan~iall~ equal {~ayments by the maturin date at m}• new
a interest rate. The result of this calculation will be the ne« amoune ut m~• monthl}~ payment.
~
s
~
~ (D) Limita On Intereat Rate Changea
"s
~
~ The rate of interest I am required to pay shali never be increased or decreased on any single Change Date by more
= than..T'"~~....percentage points(..... from the rate of inierest I have been paying for tfie preceding.... .......months.
~ My interest rate also shall never increase or decrease more than.F I VE. .percentage points(....~......%) irom the interest
~ rate established in paragaph A. of this inswment.
s
~ (E) EePfective Date of Changes
~
!~iy new interest rate ~vill become effecti~ e on each Change Date. I w ill pa~~ th~ amount of nn• new monthly ~a}~ment
begin~ing on t~?e first monthl~ pa~~ment date after the Change [)ate until the amuunt uf m~ monthh pa~~ment ~na?iges
again.
Notice of Changes
The Note Hc~lcler ~.~ill mail ~~r deii~er te~ me <i n~~;ic~ hefe~rr ca~h C tia~~tie Ua!e. The noti~e ~~ill au~i:e me of:
(i) the ne~~ intere~t rate on rn~ loan at of the ChanEe [)ate;
(ii) the amount u( m~ monthl~ ~a~ment tull<n~ing the ( han« Oate;
~ liiil am~ additi~nal matter~ ~~~hirM the tiote H~Ider it recauired t~ ~ii,tl~,;e: and
~
(i~ I the title anc! telerlic~ne nt~rnh~r ~,i a ~er,un «hc~ ~+ill an~~~rr a~i) yi~c~ti~~n I ira~ ha~e rrearclinti the noti~e.
CONVERTIBLE ARM LOAN -;TP~~:suN+ ~~.~;~x a.,~
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