HomeMy WebLinkAbout0963 GONVERTIBI.E ARM RIDER . ,
(INTEREST RATB LIMITS)
TH1S CONVERTIBLE ARM RIDER is made this ,...~RU....,.._ day of ..pCTABER 19..$4......,
and is incorporated int~ and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Deed to Secure
Debt (the "Security lnstrument"1 of the same date given by the undersigned (the "8orrower") to secure Bcrrower's
AdJustable Rate Note (the "Note'~ to HARBOR FEDERAL SAVINGS AND LOAN ASSOCIATION (the "Lende~ of
the same date and covering the property described in the Security Instrument and located at:
...t61.S.A.VENltE.. ANR..Sl1t~iRISE..BI.YQ..E.T..P..IERCE,...E.L...3345a
(Property Adtfress)
The Note contains provisions aNowing far cha~ges in the lnterest rate. If the interest rate
increases, the Bc~rrawe~'s monlhly Qaymanis will be higher. If the lnterest rate decreasas,
the BorrowePs monthly payments will be lower. On the firat Change Date, Borrower may
convert the adjustable rate toan into a iixed rate, level payment, fully amortizing loan.
ADDI710y,~L COVENANTS. In addition ro the covenant and agreements made in the Security Instrument, Borrow•er and
Lender further covenant and agree as foilotis
A. INTERFST RATE AVD MONTEiLY PAYMF \T CHAtiGFS
The Note provides for an initial interest rate of 500----------------°'~. Srctiun 4 of the Note pro~~ides t~or changes in
the interest rate and the monthly payments, as follo~~~:
4. GVTERF_.ST RATE~ ;4:ti'!) ,1f0.~'Tf~l. Y.a )'tl/-'.\T l'/!.-~ ~ t:F:S'
(A) Change Dates
The interest rate 1 wil! pay may ~hange on the .............1.S.T... da~ c~! .............KO.VEM9ER..............., 19.......$5, and on
that day of the month every ......1.~
..................monthti thereafter. f:arh ~iat~ ~m Hhi~h m~ interetit rate ~ould change is 1
called a "Change Date."
(B) 1'he Index
Beginning with the first Change Date, m}• intere~t rate ill be ba~ed em an "Index." The tnde~ is the «eekly a~~erage ~
' yield on United States Treasury securities adju~ted to a ran~tar~t maturit~ of ..N~ ~~ear~, as made available
by the Federal Reserve Board. The most rerent :ndeK (igure a~ail:~ble a~ of a~'~yti before earh Change Date is called the
"Current Index."
If the index is no longer avaifable, the Note Holder ~~ill chuo~e a ne« incle~ «hi~h i~ ha~ed upon ~omparable
information: The Note Nolder will gi~•e me notice oi itti rhoire.
(C) Calculation of Chan~es
Before each Change Date, the Note Holder i!I ~al~ulate m~ ne~+ interc.t rate b~ adding _...T.WQ..Al1D
..........SO/1 QO rcenta c uint~ 2... ~............°'a? to the Current In~iex. The sum «il! be my
1~ 8'p
new interest rate.
The Note Holder will then determine the amount of the monthl~ payment that w~ould be ti~ffirient [o repay in full
the principal I am expected ro owe on the Change Date in ,ub,tantiall~~ equal pay~ments by the maturit~~ date at my new {
interest rate. The result of this calculation v?~ill be the ne~~ amount uf my monthly payment. ~
(D) Limits Oe Interest Rate C6engea
The rate of interest I am required to pay shall never be increased or decreased on any single Change Date by more
than...T.1~R...percentage poiats(......2....%) from the rate of interest I have been paying for the preceding.....~ 2.......months.
My inierest rate also shall never increase or decrease more than.F.LUE.•percentage poiMs(.....5.....%) from the interest
rate established in paragraph A, of this instrumen~
(E) Eeffeciive Date of Changes
h1y new interest rate ~+•ill become effecti~~e on each Change Date. t~ ill pay the amount of my new• monthly ~ayment
beginning on the first monthly payment date after the Change Date until the amount of my monthf~~ payment changes
agatn.
{F) Notlce of Chaeges
The ivote Holder will mail or deli~er to me a nonce before each Change Date. The notice ~+ill ad~ise me of:
(i) the new~ interest rate an my~ loar. as of the Change Date;
(ii) the amount of my~ monthl~ pa~~ment follu~aine the Cha?~ee Uate:
liii) any additional matters ~tihich the '~+ote Holder i~ required to di~~lu~e: ~nd
(i~) the title and tele~h~~ne numbcr uC a rer~on ~~he~ ~~ill an;~~er ar~} yue~ti~~n I ma~ ha~e re~ardine the notice.
CONVERTIBLE ARM LOAN --~TREasuRv .r,oEx,-h a3~
8Q(OK 445 PltC~ t7V~ LN ~k4AMI.rC ;
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