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CONVERTIBLE ARM RIDER .
. .
(INTEREST RATE LIMITS) Loan ~2318544$' ~ ~
TH1S CONVERTIBLE ARM RIDER is ma~le this ....~~~h.... day of .........M,,~IXGb ly. $,5....._. _
and is incorporated into and shall be deemeci to ame,nd and supplement the hlortgage, Deed of Trust, or Deed to Se~ure ~
Debt (the "Security tnscrument") of the same date given by the unde~siKned (the "Borrower") to see;ure Borrower's ~
Adjustable Rate Note (the "Note") to HARBOR FEDERAL SAVINGS AND LOAN ASSOCIATION (the "Lender'7 of
the same date and cove~ing the property described in the Security Instrument and located at:
31,OO..Pruitt,.Road...~.1Q~..........~Q~'.~..&~....~u~,~~....k'~Q]C.~,ds~...3~4.52.............----......
iProperty Address)
7he Ndt~ contains provisions allowing for changes in the interest rate. If the interest rate
increases, the Borrower's monthly payments will be higher. If the interest rate decreases,
the BoROwe~'s monthly payments will be lower. On the first Change Date, Borrower may ~
conve~t the adjustable rate loan into a fixeti sate, level payment, fully amortizing loan. ,
ADUITIONAL COI~F;v~tiTS. In addition to the co~~enant and agreements ~~~ade in the Securit~~ Instrument, Borro~~~er and s
Lender further co~~enant and agree as follows: s
~
A. INTERFST RATE ANU MONTHLY PAYME:\T CHAtiGE~
The Note provides for an initial interest rate oi~ ..10 ..50 .......o•u. Sertiun 4 ot~ the Note pro~~ides for changes in
the interest rate and the monthly pay~ments, as `ollo~~ ti:
4. /,~'Tf:'Rf:STRATF'.4.\'!):1fU.1'THLI'P.-if'1/F..\'T('/1.a.1Gf::S
(P?f Change Dates
The interest rate I~vill pa}~ may change on the ---,£irst-..... da~~ ~~t .....AP~.i~ 19.g6....._. and on
that day of the month e~~ery tt~telve.........month~ ~hereal~er. Earh datr cm ~.hi~t~ r,:.: ~s~tere,t rate could change is
called a "Change Date."
(B) The Index
Beginning u•ith the first Change Date, mi~ intere~t raie ~+ill tk ha~cd ~~n an "Inde~." Tt~~ Indc~ iti ~he ~~eekl~~ a~erage
yieid on United States Treasury securitit~ adju`teci to a~on~tant maturi~~ of ........On~:. ati made a~ailable
by the Fzderal Reserve Board. The most re~:ent Inde~ fiLUrr a~ailable ati ~~t -i~ ~ia~~ betc~r~ earh C~hange Date i~ ~alied the
"Current Index." '
If the index is no longer atiailable, the Note Hotder ~~ill ~tiu~~.~ a nr~~ in.i~~ ~~hi~h i. hci.~:: u~~~n ~om~arable ~
information. The Note Holder wiii give me nc~tire ot it. ~hoi~e. +
(C) Cakalation of Chan~es ~
Before earh Change Date, the tiote Hofder ill ~alrulatr m~ ne~+ intrr~~t ratr h~ a~lciing ........tSa:ca..and.--.........
_.50/100 ~
percentage point~ 1.....z...~0......... ~~1 t~~ ~he (~urr~nt In~l~~. Thr;tim ~.ill he m~~ ~
new• interest rate.
The Nore Holder ~~ill then determine the amount of the mc~nthi~ E~a}nient that ~+uulcJ he ~uifi~icnt tc~ r.pa~ in tul)
the principal I am ex~ted to o~~~e on the Change Date in ,uh~tant+a!!~ eyual ~acr~irnt~ b~ the maturit~ date at rm ne~~
interest rate. The resutt of this calculation ~+ill be the neu amaunt c,j m~ monthl~ ~,s~men!.
(D) Limits On Intereat 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.tWo....percentage points(..,~.,. Q~?%) from the rate of interest I have been paying for the preceding......12....months.
My interest rate also shall never increase ar decrease more thar~iYe..percentage puints(.5...0.0.°X~) from the interest
rate established in pazagraph A. Qf this inswment. ~ ,
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(E) Et~'ective Date of Changes ~
1~1y new interest rate will become eff~ecti.e on each Change Date. ~~~ill ~a~ the ame~unt c~! m} ne« monthh pa~ ritent
beginnine on the tir5t monthl}~ payment date after the Change Date until th~ am~~u~~; ~~f rn~ rnonthl~ na~ment change~
again.
(F~ Notice of Changes
Thc Note Ho(der ~~ill mail or deli~er to me a noti~e hefc~:e ea~h C~h:tnge !)at~. 7he nc~[i~e ~~ill ad~i~e me ol:
(i) the new intere~t rate on m~~ loan a~ oF the Ch,ince Date;
(ii) the amount o! m} monthl~ ~a}n~ent follc~~~ing the (~hange 1)ate;
(iii) am~ additional matter~ ~+~h:ch the ~'ate Holder i~ required to di~rlu~e: and
(i~ ) the title ancl trle~hune numher ~~f a~er.~_,n «hc~ ~~ill an~~~er an~ yuc•,ti~~n [ ma~ ha~e re~ardin~ tlie notire. ;
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CQNVERTtBLE ARM lOAN -,z~~~suRv .~~o~x~-6 s~~ ~
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LN #4AMI~C
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