HomeMy WebLinkAbout0927 ADJUSTABLE RATE RIDER
(Interest Rate Limits)
THIS AD)USTABLE RATE RIDER is made this ..~8th.. day of ........December ~q,,.84
and is incorporat~d into and shall be deemed to amend and supplement the MortgaBe, Deed of Trust, or Dced to Secure
Debt (the "Security instru ent") ( the ~ame date given by the undersigncd (the."Borrower") to cccure Borrowcr's
AdjustableRateNoteto ..~rst,~~delity. Savings,and,Loan,Ass,o~iatiqn,,,,,,,,,,,,,,,,,,,,,,,,,,,,
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (the "Lender") of the same date (the "Note") and covering thc
property described in the Security lnstument and located at:
1973 SE Cheltenham Street, Port St. Lucie, Fla. 33452
(Property Address]
Th• Not~ contains provisions allowing for chcng~s in th• int~r~st rat~ ~v~ry r:or
=ub~~ct to th• Iimits stct~d i~ th• Noto. If tho inter~st ~at• incr~ases, the
Borrow~r's monthly paym~ntt will b• highfr. If th~ int~r~st ~ato docroases, the
Borrowor's monthly poyments will be lower, .
ADDiT10NAL COVENANTS: ln addition to the covenants and agreements madc in thc Security Inslrument,
Borrower and Lender further covenant and agree as follovvs:
A. 1NTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rat o~fer to n0~ ~ecTion 4 of the Note provides for changes in the intcres~
rate and the monthly payments, as follows:
1NTERFST RATE AND MON?NLY PAYMENT CNANGES
(A) Ch~nte Dates Refer to note ri der
The interest rate I will pay may change on the first day of 19. and on that day
every 12th month thereafter. Each date on which my interest rate could change is called a"Change Date."
(8) The lndex
Beginning with the Crst Change Dat~, my interest rate will be based on an Index. The "lndex" is the wcekly average
yield on United States Treasury securities adjusted to a constant maturity of 1 ycar, as made available by the Federal
Reserve Board. The most recent lndex figure available as of the date 45 days b~forc each Change Date is called the
"Current lnd~x."
If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable
information. The Note Holder wiU givc me notice of this choice.
(C) Calculation ot Changa fer to n~~e ri d~r
Before each Change Date. the Note Holder will calculate my new intrrest rate by ad~tng rcentag points
' ho) to the Current Index. The Note Nolder w•ill then round the result of this addition to the nearest one-eighth
~ of one percentage point (0.125°Ie). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new
' interest rate until the next Change Date.
! The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the
~ unpaid principat balance of my loan I am cxpccted to owe on the Change Date in full on the maturity date at my new I
interest rate in substantially equal payments. The result of this calculation a•ill be the new amount of my monthly paymcnt. '
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(D) Limit on Interest Rate Ch~nges
The rate of interest 1 am required to pay shall never be increased on any single Change Date by more than ? one
percentage point (1.0°l0) ? two percentage points (2.0°l0) /Ch~ek onl~~ ont box/ from the rate of interest [ have bcen paying
for the preceding twclve months. My interest rate also shall nevcr be greater than re~er~•~8~ note ri der
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; (E) Eftective Date of Chinges
~ My new interest rate will becom~ effcctive on each Change Date. I will pay the amount of my new monthly payment
~ beginning on the first monthly payment date after the Change Da!e until the amount of my monthly payment changes
~ again.
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~ (F) Notice of Ch'nges
~ The Note Holder will mail or deliver to me a notice of any changes in the amount of my monthly payment before the
} effective date of any change. The notice will include information required by law~ to be given me and also the title and
s telephone number of a person who will answer any qucstion 1 may have regarding thc noticc."
; B. CHARGES; LIENS
~ Uniform Covenant 4 of the Security lnstrument is amended to rcad as follows:
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~ 4. Charges; Uens. Borrower shall pay all taxes. assessments, and other charges, fines and imposit;ons attributable to the
r Property which may attain a priority over this Security Instrument, and Icaschold payments or ground rents, if any, in the
` manner provided ur.der paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when duc,
directly to tht payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph,
and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing
such payments. Borrower shall promptly discharge any lien which has priority over this Securit}~ Instrument; provided
that Borrower shall not be required to discharge any such lien so long as Borrower: (a) shall agree in w~riting to the '
payment of the obligation secured by such lien in a manner acceptable to Lender: (b) shali in good faith contest such lien
by, or defend against entorcement of such litn in, legat proceedings which in the opinion of Lcnder operate toprevent the
enforcement of the lien or forfeiture of the Property or any part thereof; or (c) shall secure from the holder of such lien an
agreement in a form satisfactory to Lender subordinating such lien to this Security Instrument.
lf Lendrr determines that all or any part of the Property is subject to a lien which may attain a priority over this Security
Instrumtnt, Lender shall send Borrower notice identifying such lien. Borrow~er shall satisfy~ such lien or take one or more of
the actions sct forth above within ten days of the giving of notice.
T-Blll Fus ooa osaa
IlD1llSTABLE RATE RIDER P{ottt A-2 o~d A-3-1 FpmilY-9/83~•FNMA Unlform Instrum~nt Form No. A 311-3
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