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HomeMy WebLinkAbout0927 t CONVERTIBI.E AR.M RIUH:R (tNTEREST RATE LIMITS) THIS CONVERTIBLE AR~1 RIDt=R i~ ma~ie thi~ ..1~TN........ day of . JANUAf~Y 1y..85......, and is incorporated into and shall be d~~cm~~ci :o amend and su~plement the ;11or~gage, Ik~cd ~~t~ Tru;[, or lh~ed to Srrure Debt (the "Security Instrument") t~f thc same date given b~• the un~lersigned (the "Borro~~er") to s~tiure Barro~~er's Adjustable Rate Note (the "Note'7 to NARBOR FEDERAL SAVINGS AND LOAN ASSOCIATION (the "Lender') of the same date and covering the property described in the Security Instrument and located at: ..ROS.SER..BI..VD..AND. MERCHANT._I..ANE_,PORT_.ST. LUC_IE,._Fl..---33452 ~Property Address) i The Note contains provisions allowing for changes in the interest rate. If the interest rate t increases, the BoROwer's monthly payments will be higher. lf the 9nterest ~ate decreases, the BoROwer's monthly payments will be lower. On the tirst Change Date, Bonower may conveN the adjustable rate loan into a fixed rate, level payment, fully amortizing loan. AI~I~ITIC~`:~l C~~~'t~~-~~ iti. In addition tc~ the io~eii:~nt an~i agreement` ma~1e in thc tierurit~ In,lrumrnt. Borro~~er anJ Lender further ro~~enant and agrce a5 follu~~~: A. ItiTERl~:.~T RATF: A\D Mn~THII~' PAti'~tE:~"I ('HA\(~t:5 The Note pro~ides ior an initial intrre,t rate ~~i ~ 0~.7.5~ a~~i ?n~ ~ute ~m~ icl~. fur ~hangeti in ~ the interest rate and the monthh pa~ment,, a~ tull~~~~.: 4. l:~"TF.RF'.ST K.•1TE~ -a.>/) 1lO.~ T///.!' /'.1)'t1L-~~ I~ ( ll 1~(,/~~.1 tA) Chanke Date, The interest rate l~~ill ~a~~ ma~~ nc~inee un the ST... ;~a~ „t FEBRUARY................ ly....._.8.6.. and on that da~~ of the month e~er~ ..................nu~mh. th~r~:ttl~r. l etch ~latr un ~~hi~h ~n~ ini~r~,t ra?c ~uul~i :ha~~ge iti calleci a "Chanee Date." (Bl The Index Beginning ~~ith the fir~t Chan~e Uate. m~ inter~,t ~a~~ ~~ill h~ h,~.«i un an "In~1r~." fh~ In~1~~ i, thr ~~cekl~ a~eratie ~~ield on United States Trea~ur~ x~uritie~ ac1t~~,trei t~, a ~~,n,[,in[ nr,t~un~~ ~,t ..ONE ~car,, a• ma~le a~ailahle b~~ the Federal Resene Buard. The t~~u~t re~ent In~l« ficur~ a~ailahlr a~ ~~t -3~ .ia~• t;rtui~ ra~h (!~an~~r [)atc i~ ~allecl the ? "Current Index." ~ 1( the inde~ is no lon~er a~ailahle. thc \ute Hu;~lrr ~~il! :h~~~~,i a n~•~~ in~l~~~ ~~hi;ti i, h:i~r~l u4~~~n ~~,m~arahle ~ i~formation. The Note Nolc~er ~~ill ~i~~ rne nuti,< <,f it~ ~h~,i~r. ' (CI Calculation of Chankes Beforeeach Chanee Dai~. the tic~tc Hu(.fer ~+ill ~.tl~ulatr in~ n~•~+ in!;rr~~ r:it~• h~ .~:i~l~z~_~ ......IHEtEE..AND ~ 00~100 ~,er:entati~ r~,int~ t....3..OQ....... tii: e urr~iit I:i~1~~. I hr•u?n ~~iU h~ m~ ~ ne~~ interest rate. The Note Holder ~~ill th~n detcrmin~ th~ am.~unt ~}f th<~ nu,ntt;h ~~.~~in~•nt 'hat ~",ul.f h<• ~utl;~i~nt t~, r~{~a~ in tull ~ the nrincipal I am e~pe~ted tc, ~~~~e em ?he C han~r I)atr iii .uh~tuntiall~ ~•yti.ii ~~;i~in~i~t~ h~ th~ ni,+~ur~t~ ua<< at m~ n~~~ interest rate. The re~ult ot thi, ~al~ulatic~n ~:ill h~ th~ i~r~~ am~~unt ~,t n~~ ni~~nthl~ j~a~n~rnt. (D) Limits On Interest Rate Changes The rate ~f interest I am required to pay shall never be increased or decreased on an}~ sir.gle Change Date by more than.. T~:r~...percentage points(..... from the rate of interest I have been paying for the preceding....12.......months. My interest rate also shall never increase or decrease more than.F.I.V.~..percentage poir.ts(.....5......°F,) from the interest ~ rate established in paragraph A. of this instrument. ~ (E) Effective Date of Changes ~ ~1~ ne~~ intere;t ra[e~~ili he~o:neeffe~ti~e~,n ~a~h ( f~an,z~ [)at~ I~~ill G~~n !h~ :~m~~unt ~~i ni~ n~~~ {11l~IlIIII~ 4~a~m~nt ~ - ~ beginning un th~ fint m~~nthl~ G~a~m~nt ~lat~ aft~r th~ ( han,~~ I)~+:r ur,iil ?h~ ,ini:n~nt rt ni~ ~zu~nthh ~,a~m~nt ~hang~~ aeain. ~ ` z Notice of Changes ~ ~ The ti~~t~ Hc~!~1er ~~itl rn.~il ~,r ~1~li~er m~~ a n~~n~~ h~~(~,r; r,i:h ( 1;an,~~ {).~t~. f h; u~~n" •.~~I! a~1~i.~ n~~ ut: ~ ~ li) the ne~~ intere~t rate t~n m~ l~~ai~ a~ ut th~• C han~~ f)at~~; • ~ ~ lii? the am~~ur~t ~~t Tn~ munthl~ ~a~n~cnt full~~~~ine th~ ( han~_~ I),it~: ~ . . - ~ (ill) ~SII\- ~11~i.~llll~(lti~ 111~111t~~ \~~li:fl f~iC ~~~1~' f~l~~l~:i" I~ fc_I~UIfCii I(~ Ul~~~i~.i: :tlil~ ~ (;t) (f1C [1I~~ .s~,~i c~~~rti(~Ili ~111I1?f`~f t~; ,1 (~Cf~~~tl ~~~lt~'~tf~i .ifi~~~Cf :1t1\ I~lIC~4ti~Il { Ill~f: ~1L1~~' Ic'z:1(~~I(l~' f~IC II~~U~<'. ~ ~ ~ ~ CONVERTIBLE ARM LOAN - ~~::,5 • ~ ~ ~ ~ ~ ~ ~ ~~K~~~ f LN #4AML-C ~ ~O~iK P~G - - ~f ~ : ~ ~~~.~;~~-x£ ~