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HomeMy WebLinkAbout0975 . ~ ~ONYERTIBLE ARM RIDER ' i (INTEREST RATE LIMITS) ~ ~ THIS CONVERTIBLE ARM RIDER is made this .28TH.,....,.. day of ~1.UNE,_._. $ . . ~9...5........, and is incorporated into and shali be deemed to amend and supptemen! the Mortgage, Deeci of Trust, or Oeed to Serure Debt (the "Security Instrument") of the same date given by the undersigned (the "Borrower") ro secure Borrower's Adjustable Rate Note (the "Note'~ to HARBOR FEDERAL SAVtNGS AND LOAN ASSOCIATION (the "l.ender'~ of the same date and cavering the property described in the Securiry Instrument and located at: STREAMt,ET AVENUE PORT ST LUCIE~ Ft,. 3345~ (Property Address) The Note contains provisions allowing tor ahanges in the interest ~ate. if the interest rate increases, the Borrower's monthly payments will be highe~ If the interest ~ate decreases, the Borrowe~'s monthly payments wiil be lower. On the tirst Change Date, Bonower may conve~t the adjustable rate loan into a fixed rate, ievel payment, fulty amortizing ioan. AD~~iTIC~NAt_ Cc~~'Ev.~~TS. [n addition to the co~~enant and agreements made in the Se~urity Inurument, Burro~cer ancl Lender further rovenant and agree as follo~~,_ A. INTF.RFST RATF: A:Vt) lv1Un 1 H[.-ti rA~`i~i"r:ti i t-NA~i:r> The Note provides for an initial intere~t rate of 9' 75~~ .................~'o. Sertion ~1 of thc Note prc~cidc~ti for rhanges in . ~ ~ ~~~i.s:e~ ille iiiiC~Cbt faic :i:iu iii= {iiiliii,ii~ F,u_:,:~C~:::, a. r:vrF~kF:sr k.~rE~.-~.~~i~ ti~u.~ r~~i.>~ i~.~~ s~?~~:.~~r c~i~-: ~c,r::ti (A) Change llates The interest rate I~vill pay ma~~ ~hanee c,n the ~ ST.... da~ c,t SEPT~.F($.~.Q ly.....,~b.., and on that day of the month e~er} ._..12.~ .................mc~nch~ thereatier. E:a~h clatr un ~~hi~h m~ in?rre,c rate ~ould change is caUed a "Change Date." (B) Tfielndex Beginning w~ith the tint Change Uate, m~ inter~,t rate ~~ill he ha.rd un an "In~f~~." T'he Inc1r~ i. thc ~~eekl~~ average yield on United States Treasur}~ se~uritic, adj~:titecl t~~ a ~;~n.~ant maturit~ uC .QNE ~ear~, a~ made a~ailable by the Federal Resen~e Board. The mu~t re~ent Inde~ ligure a~ailahlr a~ ~~f ~l~ ~1a~~ hclur~ ~a~h C hangc Uate is ~alied the "Current Index." _ If the index is no longer a~ailable, the :`~~te Hu(cler ~~it! :h~,,,.~ n~~~~ in~ir~ ~~h~~h i, t,a~cd u~cm rc~mparable information. The ~ote Hofder ~.i(( gi~c me notic~ ut it. ~hui~~. (C) Calculatiw~ of Chan{;es Be oreeachChangeDa[e,theNoteHoldrr~+ill~al~ulaeem~ n~~~ int~re•tra~rh~ a~l~lint ~0~~-~~~AND~•~~-~~--~~~~•-~~• ........75.,100 ~rer~entagr pc~int, I....Z..75............°~,? t~, th~ ( urr~n~ I?~de~. The,um ~~ill tx m~. ne~~ interest rate. The Nore Holder «il1 then determine thr amuun~ uf the r~~unthl~ ~,~crncnt that ~~~u~l~l hr ~ulfi~ient t~~ rr{~a~ in fult the ~rincipa! 1 am ex~ted tv o~~e cm the Change na~r in tiuh~tan?iall~ ~c~ual ~,?~m~nt. h~ thr incuurit~ ~1ate at m~ ne~ti interest rate. The result of this ral~ulation ~cill be the ~~e~+ amuunt ~~f nt~ muntht~ t~a~m~ni. (D) Limtts On Interest Rate Changes The rate of interest I am r~quired to pay shall never be increased or decreased on any single Change Date by more thanT~'~~.....percentage points(....2......9(i) from the rate of interest I have been paying for the preceding..;~.........months. My interest rate also shall never inerease or decrease more tharf.l.1lE....percentage points(...5.......96) from the interest rate established in paragraph A. of this instrument. (E) Effective Date of C6anges ;11p new in~erest rate will berome effe~ti~e on earh (~hac~g~ Uatr. 1«iil ra~ tftr am<~unt ~~f rn~ nc~~ monthl~ ~a~ment beginning on the first monthly pa~~ment dat~ atter rhe ~~hange Datr i~ntil the ain~~un~ ut rn~ munthl} {~a~ment ~hange~ aguin. Notice of Changes The Note Holder ~~iN r.?ai! i~r deli~er tc~ rne a nt~ti~e hefc~rr ~a~h ( han~e Uatc. I h~ ne~u~r ~~ill u~l~itie ?nr ~t: (i) the ne~+ intere~[ rate on im~ loan a• of the Cf~ange Uat~; ~ii? the amount of m~ mcinthl~ ra~ment 1~~I1~~«inL the (~han~e 1)at~: tiii) an~ additiona! rr~atter~ ~~hi~h the ~i~te Hc~ld~r i~ requircd te~ di.~lu,e: ancl (i~? the ti~l~ and t~le~hcme ~iumher uf ~kr~!m ~~hc~ ~~ill an~•,~~r an~ yur~tinn ! rna~ ha~e rc~arelin~ th~ ~~oti~e. CONVERTIBLE ARM LOAN -~rPEUSuR~~ ~~~~e~x~-h ~~ea~~71 ~ac~ ~7~ LN #aa?ML-c . . . ~.u~~~ - _ _ ~ u~-~~ ~ . ~=f,