HomeMy WebLinkAbout0969 . 23183146 ~
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~ ~ CONVERTtBLE ARM RIDER ~ ~ ~
(INI'Eit~3T RA'TE LIMRS) .
THIS CONVERTiBLE ARM RIDER is made chis .....4~~1...,.. day of .....February ~q,..85...,,,
and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of TYust, or Deed to Secure
Debt (the "Security Instrument") of the same date given by the undersigned (the "8orrower") to secure BoROwer's
Adjuatable Rate Note (the "Note'~ to HAR80R FEDERAL SAVIN(3S AND LOAN ASSOCIATION (the "Lende~ ot
the same date and covering the property descNbed in the Secu~ity Inatrument and located ar
....................2210 Carnation Road,_.Port.St...Lucie, Florida 33452
(Property Address)
The Note contains provisions allowi~g for changes in the interest rats. If the interest rate
increases, the 8orrower's monthiy payments will be highe~ If ths interost rate decreases,
the ~orrowe~'s monthly payments wil! be lower. On the tirst Changs Dete, Bomowe~ may
convert the adjustable rata loan into a fixed rate, {evel payment, fuliy amortizing loan.
An~tT~oNn~ CoveNArrrs. In addition to the :.ovenant and agreements made in the Securiry Instrument, Borrower and
L,ender further covenant and agree as foliows:
A. 1NTERE.ST RATE AND MONTHLY PAYMENT CHANC:E.S
The Note provides for an initial interest rate of ....10..~Q ......................~o. Section 4 of the Note provides for changes in
the interest rate and the monthly payments, as follows:
4. INTERFST RAT£ AND MO,~'THl.Y' PAYMI:':~'T C'H.4:\'GF.:S
(A) Change Ds~tes
The interest rate I will pay may change on the ..----.1St........ ~a~• ~t' ~1ay 19.86......, and on
that day of the manth every TWe•1 Ve....._......months thereafter_ Earh date on which my interest rate could change is
called a "Change Date."
(B) The Index
Beginning with the first Change Date, my interest rate µ~ili be based on an "lndex." The Index is the weekiy average
yield on United States Treasury securities adjusted to a ronstant maturity of ......One,,,,, years, as made available
by the Federal Reserve Board. The most recent Inde!c figure available as of d5 days before each Change Date is called the
"Current Index."
l~ the index is no longer available, the Note Holder will rhoose a ne~ index whirh iti based upon comparable
information: The Note Hoider will give me notice of its ~haice.
(C) Cs?kuls~tion of Changes
I Before each Change Date, the Note ~iolder ~ ill ralrulate my ne~~ interest rate by adding ......TWQ..~!R.d
~ ..................:.~Q~(.~~D...............-•---•. percentage points (......2,.~Q.........°~o) to the Current Index. The sum v?•ill be my
new interest rate.
E The Note Holder will then determine the amount of the monthly payment that ~•ould be sufficient to repay in full
` the principal I am expected to owe on the Change Date in substantiatly equal payments by the maturit~• date at my new
interest rate. The result of this calculation will be the new amount oi~ my monthly payrrtent.
(D) Limlts On Iaterest Rate Changes
' The rate of interest I am required to pay shall never be increased or decreased on sny single Chan~e Date by more
than... T~riQ..percentage puints(.. z...Q...%) from the rate of interest I have been paying fo~ the receding... .~........months.
~ My interest rate also shall never increase or decrease more thanFi ve,,,percentage points( ~:0 from the interest
rate established in para~aph A. of this ~instrument~ ~
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(E) Eet'~cctive Date of C6angea ~
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My new interest rate will become effective on each Change Date. 1 w~ill pay th~ amount oF my new monthly payment '
~ beginning on the first monthly payment date after the Change Date until the amount oF my monthly pa>~ment changes j
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again.
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~ (F) Nottce of Changta
The Note Holder will mail or deliver to me a notice before each Chanee Date. The notice ~~ill advise me of:
~ (i) the new interest rate on my loan as of the Change Date;
(ii) the amount of m}~ monthl~~ pa~~ment fotlow~ing the Chanee Date:
(iii) any additional matters which the ~?ote Holder is required to disclose; and
(i~) the title and telc~hone number of a~erson ~~ho ~+ill an~~~er am~ yue~tion I ma~ ha~e regarding the notice.
CONVERTIBLE ARM LOAM -~TREASURV ~~voEx;-s%a3~
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