HomeMy WebLinkAbout0979 LOAN N0: 23145962 t1Al~ Robert F. & Kathleen A, Day
(e) Limits on Interest Rate Changes
Ny interest rate also shall never increase or decrease more than Five
percentage points ( 5.Q0 X) from the interest rate establi~hed in paragraph 1 of
this agreement. My intereat rate also shall never increase or decrease more
than Tw0 perceatage pointe (2.00 x) from the rate of interest I have
been paying for the preceeding 12 monthe.
(f) Effective Date of Changea
My new interest rat~ will become effective on each Change Date. I vill pay the
a~ount of my neW monthly payment beginning on the first monthly payment date
after the Change Date until the ~mount of my monthly payment changes again.
(g) 'Notice of Changes
The Note Holdex will mail or deliver to me a notice before each Change Date.
The notice ~rill advise me of :
(i) the new interest rate on my loan as of the Change Date;
(ii) the amount of my monthlq payment following the Change Date;
(iii) any additional mxtters which the Note Holder is required to disclose; and
(iv) the title and telephone number of a person who will answer any question I
may have regarding the notice.
2. A late charge equal to 4x of the amount of the monthly payment shall likewise be
due and payable without demand if any installment is not paid within the grace period so
atated in the note.
3. BORRUWER'S OPTION TO CONVERT
Borrower may, at Borrower's option, modify the repayment terms of the indebtnesa secured
hereby on the First Change Date. At that time, Borrower may convert the Ad~ustable Rate
Loan evidenced by this Modification into a fixed interest rate loan to be fully repaid in
equal mnnthly payments of principal and interest over the remaining term of the loan.
(A) Lender's Notice to Borrower
Lender's "Notice of Changes" to borrower pursuant to paragraph 1(~) given prior
to the first change date shall also contain the following information pertaining
to the Borrower's option to convert:
(i) The fixed interest rate payable by Borrower if Borrower converts into a
fixed interest rate loan;
(ii) The amount of Borrower's new monthly payment at the fixed rate of
interest; and
(iii) a date, not more than 15 days from the date the notice is given, by ~hich
Borrower must execute and deliver to Lender a document in the form
~ required by Lender evidencing the modification of the Note to provide a
' fixed interest rate. 1
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(B) Selection of Fixed Interest Rate and Monthly Payment Ad~ustment '
~ Lender shall set the fixed rate of interest payable by Borrower at a rate
identical to the sum of the Federgl Home Loan Mortgage Corporation's Required
Net Yield for 60-day delivery of 30 yAar, fixed rate mortgages available 45 days
prior to the first change Date plus three-eighths of one percent (.375~). If no
suc~ Required Net Y"ield is available, Lender will determine the fixed interest
rate.
Borrower's monthly payments at the new fixed rate will begin as of the first
monthly payment after the first Change Date. The monthly payment will be the
~ amount that is necessary to repay in full the principal Borrower is eapected to
~ owe on the Change Date in substantially equal payments by the maturity date at
the fixed interest rate.
4. BORROWER'S ~L~CTION NOT TO CONVERi
~ Borrower must exe-^ute and deliver ~o Lender the document evide:.cir.g the modification
~ of the Note with~n-t e period set in Lender's notice as provideai in Paragraph 3(A) above.
~ If Borro~rer does• no~'do' this within the specified date, Borro~?er ~an no longer exercise
~ the option to convert.
~ 5. Except as specifically des~gnated herein, nothing here shall constitute a change or
~ amendment to ttte aforementioned promissory note and mortgage, the provisions of which are
~ specifically reaffirmed by the owner(s).
6. This Agreement is binding upon tbe heirs, personal representaTives, successors and
assigns of the parties.
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03/20/85 (adjustable) !#if~BE • BOOK~~ ~ t~ P3ge 2 of 2
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