HomeMy WebLinkAbout0977 . • t.J ~
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CONYERTIBLE ElI~M R1DER ~ ~ "
(INTEREST RATE LIMITS) 23185893
THIS CONVERTIBLE ARM R(DER is made this ..1~XH........ day of .hAR~N 19. 85.......,
and 'u incorporated into and shail be deemed to amend and supplement the Mortgage. Deed of Trust, or Deed to Secure
Debt (the "Security tnstrument") of the same date given by the undersigned (the "8orrower") to secure Borrowcr's
AdJustabte Rate Note (the "Note'~ to HARBOR FEDERAL SAV1NaS AND LOAN ASSOCIATION (the "Lende~ of
the same date anti covering the property described in the Secu~ity instrument and located ar
. AVENS STREET PORT ST L.UC,IE.~..FL,...33~~~
(Property Address)
The Note contains provisions ailawing for ch~rpes in the interest rate. it t.tre interest ~ate
increases, the Bonowe~s moMhly paymerits witl be higher. !t the intarest rete dscresaes,
the Borrowe~'s r~nonthiy payments will b~ lower. On the tirat Chanqe Date, Borrower may
convert the adjustabie rate I~art~ into a fixed rate, lsve! payment, tully amortWng loan.
ADn~7'~otvA~ Cov~N~nrts. ln addition to the covenant and ag~eements made in the Security [nstrument, Borrower and
Lender funher covenant and agree as follows:
A. INTEREST RATE AND MONTNLY PAYMENT CHANGES
The Note provides for an initiat interest rate of ~ 0~.~~fl ~o. Section 4 of the Note provides f
or changes in
the interest rate and the monthly payments, as follows:
4. LNTEREST RATE AND .MONTH[.Y PAY:ti~F.;VT CHA:1'Gt:S
(A) Ctwnge Dsites '
T The interest rate 1 wiQ pay may change on the ~.ST.._ da>• ot' ............,~UH.~ 19......$b.. and on
; that day of the month every ..................months thereafter. Each date on ~~hich m?~ inrerest rate could change is
~ called a "Change Da[e."
B) 'I`he Index
t
~ Beginning with the first Change Date, my interest rate will be based on an "inde~." The Index is the weekty average
x yield on United States Treasury securities adjustec! tu a constant maturit~~ of . ANE qears, as made available
by the Pederal Reserve Board. The most ret;ent Index figure avaitable as ~f 45 days tjefore each Change Da[e is called the
"Current Index."
If the index is no longer avaitabte, the Note Halder ill choose a new ir~det ~chirh is based upon comparable
, informatian. The Note Hotder will give me notice of its rhoice.
(C) Cakulation of Changes .
: ~ Before each Change Date, the Note Holder ~~~iU ralculate m}• ne~~ intere~t rate b}~ adding . Tti10......pMp
` ...!:....~?.0/1~ percenta~e paints (-•••.2..$lJ...........°'o) to the Current Index. The sum will he my.
new interest rate.
The Note Holder wil! then decermine the amount af the monthly payment that ~?ould be ~uffi;:ier.t to repay in full
the prinripal 1 am expecteci to owe on the Change Date in ~ubstantialty equal pa}~ments b~~ the maturi~~~ date at my new
interest rate. The result of this calcu(ation w~ill be the neµ~ amount ot m}~ monthly pa~~ment.
(D) Limits On Ietereat Rate Changes
The rate of interest I am required to pay shall never be increased or decreased on any single Change Date by more
than. TMD....percentage points(.... fmm the rate of interest I have been paying for the preceding...12........months.
My interest rate also shall never increase or decrease more thanF..t.k~...percentage points(....~~.......%) from the interest
rate established in paragraph A. of this instrumen~
(E~ Etiective Date of Changcs
My new interest rate wilt become effective or? each Change Date: I~~ i!1 pay the amount oC my new monthly payment
beginning on the first monthly payment date after the Change Date until the amount of rny month!}~ pa}~ment changes
again.
(F) Notics of Changes
The Note Holder will mail or deliver ro me a notice before each Change Date. The notire ~~il! advise me of:
(i) the new interest rate on my ioan as of the Chai~ge Date;
{ii) the amount of my monthly payment followin~ the Change Date;
(iii) any additional matters which the Note Holder is required ro discl~se; and
(iv) the :itte and telephone number of a person Hho w~iN ans~~er any question 1 ma~~ ha~e regarding the notice.
CQNYERTIBLE ARM LOAN -ITP,EASURv tNDEX1-b!83t •
600K ~t1c~ pf~F ~ LN ~4AMI.~C
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