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HomeMy WebLinkAbout0956 ~+'~TM F.XHIBIT A CITY AFFORDABLE MORTGAGE PLAN ~ ° e(~ ADJUSTABLE RAT~ LOAN RIDER . Notice: The security instrument secures a Note which co~tains provisions that: (1) Cause the interest rate to change periodicaliy based on changes in an Index. The Borrower's scheduled morithly payment will also change periodically. (2) Allow the outstanding principal balance of the loan to increase over time. This wfll happen if the scheduled monthly pay- ment is not Iarge enough to pay all of the interest due and the Lender lends the Bo~ rower the diNerence under the terms of the Note. This Rider is made this 17th day of .ianuar~ , t9 and is incorporated into, and shall be desmed to amend and supplement the Mortqage, Deed oi Trust, or Deed to Secure Debt (the "Security Instrument") of the same date given by the undersigned (the "Borrower' ) to secure Borrower's Note to City Federal Savings and Loan Association, (the "Lender") oi the same date (the "Note") and covering the pro rry desc ibed i the gec i trument and located at _3602 S.W. Rosardo Street, Port gt. Luc~e, F~orida~~4~~ Modifications. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. Interest Rate Changes The Note has an "Initial Interest Rate" of _1Q...$Z~ °ib. The Note intersst rate ma be increased or decreased on the first day of the month beginning on August 1 , t9$~-, and every ~ months thereaRer. The dates on which the interest rate may change are called the "Interest Rate Change Dates." Changes in the interest rate will be based on changes in a measure of the cost oi money called the "Index". The Index will be stated as a percentage figure. The Index at the beginning of this loan is the one following the box which is marked: X The average discount rate on twenty six week Treasury Bills as announced by the U.S. Treasury Department following its sale of these securities. The weekly average yield on United States Treasury Securities adjusted to a constant maturity of years as publish- ed by the Federal Reserve Board in Statistical Release H-15 (519) published weekly. The Lender may substitute a new measure of the cost of money as the Index if at any time the Index being used ceases to be publicly announced by its source. The substituted Index will be used to deiermine changes in the interest rate beginning with the first interest rate change after the substitution. Any substituted Index will be beyond the control of the Lender and will be readily available to and Verifiable by Borrower. To set each new interest rate, the lender will first determine the "Current Index" (igure. The Current Index figure is the figure most recently available 45 days before each Interest Rate ChangP Date. The Lender will oLL d up the Current Index figure to the nearest one eighth of o~e percent (.125%). The Lender will add the ' amount of ~/o to the Current Index figure. The result of this addition will be the new interest rate. B. Monthly Payment Changes: Capitalize~! Interest The secured indebtedness is payable in monthly installments. Monthly payments will be applied first to the intere~t due and then to principal. The interest due may be greater than the current amount of Borrower's scheduled monthly payment. In that case, ; the interest due which is greater than the Bonower's sheduled monthly payment witl be advanced on Borrower's account by Lender and added to the oustanding principal balance under the Note, unless otherwise paid by Borrower. Such capitaiized in- k terest is part of the indebtedness for which the Security Instrumeni secures repayment. ' Borrower's monthly payment for the first 24 months will be in the amount oi U.S. $ 267 .14 i On March 1 g 8~ and every 24 months thereafter (the "Monthty Payment Adjustment Date"), f Borrower's monthly payment will also be reset. In resetting the monthly payment on those dates, the Lender witl determine the ~ amount of the monthly payment on the basis of the following factors: ~ (a) the outstanding principal balance, and (b) the then current interest rate, and (c} the remaining term of the loan. The Lender will set the monthly payment at an amount which would be sufficient to pay the loan in full over its remaining term assuming the then current interest rate does not change. In addition, the Lender may increase the Borrower's monthly payment at anytlme the total of the amount of interest capitalized as provided above since the beginning of the loan reaches $ 9, Od0 . Od ~ C. Loan Charges ~ It could be that the loan secured by the Securi(y Instrument is subje~t to a law which sets maximum loan charges and that law ~ is interpreted so that the interest or other loan charges collected or to be collected in connection with the loan, would exceed permitted limits. If this is the case, then: (A) any such loan charge shall be reduced by the amount necessary to reduce the charge ~ to the permitted limit: and (8) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note, or by making a direct payment ~ to Borrower. ~ D. Prior Liens ` If Lender determines that all or any part ot the sums secured by this Security Instrument are subject to a lien which has priority F over this Security ~nstrument. Lender may send Borrower a notice identitying that lien. Borrower shali p~omptty act with regard to that lien as provided in paragraph 4 of the Security Instrument, or shall promptly secure an agreement in a form satisfactory to lender sut~ordinating that lien to this Securiry Instrument. ~ ~ By signing this Rider, rrower agrees to all ol the above. ~ M. ; ~i~~, ~ 4 P.'.~~ E %7'J ~ ~ VYITNESS: ~ , tf~~ c ' ' ~ ~ ~ ^ ~ ~ ~ ~l ~;~i i.1 , ~k. Y - ~ _ ~ ~,l , ~ i.c . (Seal) ~ ~:K HELENE MOR AN Borrower ~ ~n.~ ~~:,h 453 P!GE 249(l ~ ~ - (Seal) Borrower ~ DISTRIBUTION: Orq~~a~ - Attac~ !o !he ct~g~na~ cecunty irstr~ment iLende~ ar,er ~xo~G~ngi Gopy 1- Attac~ to topy Of thE Setunty Instrum~,t ~lende+) s' Copy 2- Attacn to copY ot ~ne Se[u~:ty lr.s;'ur'~ent lM.en9dqprl CopY 3- Attx~ ro c ~p _ opy ol the SeC~rrty In~?rur.ieni 1Stftlenent Agen~l - 3c-32 ~ -03~ 1083 ~ i...~ = -4-~>s' ; .x ~x~~ v-~ ~ w _