HomeMy WebLinkAbout0918 ' CONVERTIBLE ARM RIDER
(INTEREST RATE LIM[TS)
THIS CONVERTIBLE ARM RIDER is made chis 28~h..... day of ...December 19 84 , II
and is incorporated into and shall be deemed to amend and supplement the hlortgage, Deed of Trust, or Dee~+ to Secure 'i
Debt (the "Security lnstrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's
Adjustable Rete Note (the "Note'1 to HARBOR FEOERAL SAVINGS AND LOAN ASSOCIATION (the "lende~ of '
the same date and covering the property described in the Securiry Instniment and located at:
Streamlet Avpnue, Port St. Lucie, Florida 33452
(Property Address)
The Note contains provisians allowing for changes in the interest rate. if the interest rate
increases, the Bonowe~'s monthly payments will be higher. If the interest rate decreases,
the Borrowe~'s monthly payments wiil be lowe~ On the first Change Date, Borrower may
convert the adjustable rate loan into a fixed rate, level payment, fully amortizing loan. j
ADDITIONAL COVE~+.a~TS. In addition to the co.~enant and agreements made in the Se.~urity Instrument, Borrower and
Lender further covenant and agree as follo~+5:
A. INTERFST RATE AND MO~iTHLI' PAYME\T CHAtiGE:ti
The Note provides for an initial interest rate of 11. OO . o~o ~«~~~~n ~i of the Note pro~ ide. 'ior changes in
the interest rate and the monthl~~ payments, as follo~~s:
l;VTERF_.ST RATE .4:~!) :NO.\ THL P.4 ?"1ff:~.\ T l'//-1 ~Gl~~.ti'
(A) Change Dates
ly8b......., and on
The interest rate 1 wil? pay ma}~ change on the ....fi rSt ~a~ ~,j __..Mdr~F
' that day of the month ever}• tWelYe.._,.__..monthti thereatter. t:a~h cia~r ~~n ~~hirh m~ in?eretic rate could change is
called a "Change Date."
(B) The Index
Beginning w~ith the f~rst Change Date, my interetit rate ~~il( br ba~r~i ~~n an "Inde~." Thr lncie~ i, the ~?eekly a~erage
' yietd on United States Treasur~• securities ad}usted to a ron,tant m~~~ur~~> ur _ one .~~ar~, ati made available
b~ the Federal Reserve Board. The mos[ rerent Inde~ iigure a~ailable ati of ~1~ ua~~ heforc ra~h Chantie Date is ralled the
, "Current Index."
[f the index is no longer a~ailable, the Nate Holder ~~ill ~h~~~~.e a n_~~ inde~ ~~hi~h i, ha~ed u~on romparable
information: The Note Holder will gi~e me noti~e of ie~ ~hoire.
4 (C) Cakulation of ChanRes
; Be org each ~hange Date, the Note Holder ill ~alrulatc m} ne~~ intere`t rate b~ adding ;
F two an~ tl Ve/~OC ~rcentage puintti f---Z . 50 .....'j'o1 te~ ihe ('urren~ Inde~. The sum ~~ill be m~~
new interest rate.
The Note Holder will then determine the amount of the monthl~ ~a~ment that ~+uuld he ~utfir~ent to repa}~ in fuli
~ -
~ the principal I am expected to owe on the Change Date in ,ubtitantiall~ rquai pa` mentti by the maturit~ date at m}~ neu~
5 interest rate. The result of this .alculation will be the re« amaunt ot m~ monthl~ pa~njent.
s
~ (D) Limits On Intereat Rate Changes
€
` The rate of interest I am required to pay shall never be increased or decreased on any single Change Date by more
` tw0 ' RQ.%) from the rate of interest I have been a• in for the recedin 12........months.
. than............percentage po~nts(..~.. P~ 8 P
My interest rate also shall never increase or decrease more than...f.i.ve.percentage points(.S..UQ..%) from the interest
rate established in pazagraph A. of this instrument~
(E) Eeffective Date of Cfianges
tity new interest rate w•ill become effecti~e on each Char~ge Date. I~~ ill pa~ the amount of m~ ne.~ manthl}~ pa}~ment
beginning on the first monthl~ pa}~ment date after the Chan~e Uate until the ar~}c~unt ot m) monthl~ ~a~menc changes
again.
Notice of Changes
The Note F{older will mail or cieli~er to me a ni~ti~e bctore each C'han~~e Uate. I he nc~ti~e ~+ill ad~~te me of:
~i) the new intere~t rate an m~ loan as of the Change Date;
~ii) the amount of m~ rnonthl~ pa~ment tol.lu~~ing the Chantie U~ate;
(iii? ar~~ additic~nal n~atter; ~.hi~h ~he `~~te Holder i~ reyuired t~ di~~lu,r; and
~ (i~) the title a~:d telr~hc~t;e number ut~ a~er«~? «h~, »ill an~~+~r an~~ yue.ti~~n I m:~~~ ha~e r~tiar~iing th~ notice.
CONVERTIBLE ARM LOAN-~~~~as~~~~, ~~,c~x~-h~a~~~
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