HomeMy WebLinkAbout0982 ADJUSTABLE RATE RIDER .
(1 Year Treawry l~dex-Rate Caps )
i H1S ADIUSTABLE RATE R1DER is made this ..~!ld..... day of ~ 1~ and is
incorporated into and shall be d~emed to amend and supplement 'Nortgage, Deed ot Trust or ~ecurity Decd (the
"Stcurity Instrumeni"1 of the same date given by the undersigned (the "8brrower") to sccure Borrower's Adjustable
RaIC NOit (~he °tioce"; c;,......!!~'°ici~sT. ~.oE,.~AL. SAVII~GS. JMO..~QIW..l.~'~+.~4G~AT1~~l.....---_.. . _
(the "Lcnder") of the same date and covering the property described in
the Stcunty tnstrument and iocatea at:
87SO..~M~h..~.,....~~3 ~,..~1lM~..~R*Cb,..F~P.t4lJl1....3~57.............................................
(P?operty AddressJ
THE NOTE CONTAINS RROViS10NS ALLOWING FOR CHANGES ~N THE INTEREST RATE
ANO THE MONTHLY PAYMENT. THE NOTE LiMITS THE AMOUNT YHE 80RRQWEii'S
INTEREST RATE CAN CHANGE AT ANV ONE TMAE ANO THE MAXIMUM RATE THE 80R•
ROWER MUST PAY.
ADUITIONAL COYENAN'1'S. In addition to th~ covenants and agreements made in the Security Instrument, Borrower .
and Lend~r further covenant and agru as follows:
A. INTEREST RATE AND MONTHLY PAYMENT CHANCES
The Note provides for an initial interut rate of ..9.,?ZS.R......%. The Note providcs for changes in the intcrest rate and the
rrtonthly payments, as follows:
4. [NTERESt RATE AND MONTHLY PAYMENT CHANGES
( A ) Change D~tes
The interest rate 1 wili pay may change on the first day of i 19 87...., and on that day
every 12th month thereafter. Each date on which my interest rate could change is called a"Change Date."
( B ) 1'be Index
Beginning with the 6rst Change Date, my intcrest rate will be based on an Index. The "Index" is the weekly average
yield on United States Treasury securities adjusted to a constant maturity of 1 year, as made available by the Federal
Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the
"Current Index."
If the lndex is no longer available, the Note Holder will choose a new index which is baud upon comparable
information. The Note Nolder will give me notice of this choicc.
( C ) Calcnlatioa of Changes
Y Y 8
Before each Chan e Date, the Note Hold r will calculate m new interESt rate b addin TH~E ~nd NO/100
percentage points !....3'~......96) to the Cur- '~ex. The Note Holder will then round the
result of this addition to the nearest one-eighth of one percentage point ~u. I 2596). Subject to the limits stated in Stction
4(D) below, this rounded amount will be my new interest rate until the ncxt Change Date.
The Note Holder witl then determine the amount of the monthly payment that would be sufficient to repay the
unpaid principal that 1 am expected to owe at the Changc Date in full on the maturity date at my new interest rate in
' substantially equal payments. The rtsult of this calculation will be the new amount of my monthly payment.
; ( D) Limits on Interest Rate Clwnges
~ The interest rate 1 am raquired to pay at the first Change Date will net be greater than ....11.250 96 or less than
~ ~'z'~ ...............R6. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more
than two percentage points (2.0`k) from the rate of interest 1 have been paying for the preceding twelve months. My
~ interest rate wil! never be ~reater than ..,.14.250 gb
~ ( E) ERectire Date of Ctutnges
~ My new interest rate witl become eRective on each Change Date. 1 wil! pay the amount of my new monthly payment
~ beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes
again.
~ ( F ) Notice of Changes
~ The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly
~ payment before the ef~ective date of any change. The notice will include information required by law to be given me and
also the title and telephone number of a person who will answer any question 1 may have regarding the nocice.
~ B. TRAhSFER OF THE PRUPERTY OR A BENEF[CIAL INTEREST IN BORROWER
Uniform Covenant 17 of the Security (nstrumen! is amended to read as follows:
Tnnsfe~ of the Property or a Beneficial Interest in Bortower. If all or any part of the Property or any interest in it is
r sold or transferrcd (or if a bsneficial interest in Borrower is sold or transferred and Borrower is not a natural person)
g without Lender's prior written consent, Lender may, at its option, roquire imm~diate paymcnt in full of all sums secured
; by this Security Instrument. However, this option shali not be exercised by Lender if ezercise is prohibited by federal law
~ as of the date of this Security~lnstrument. Lender also shall not exercise this option if: (a) Borrower caus~s to be
~ submitted to Lender information required by Lender to evaluate the iniended transferee as if a new loan were being made
~ to the transferee; and (b) Lender reasonably determines ihat Lcnder's security will not be impaired by the loan
~ assumption and that thc risk of a breach of any covenant or agreemcnt in this Security instrument is acceptable to
~ Lender.
~ To the eztent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to
~ the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to
~ Lender and that obligates the transferee to keep all the promises and agrecments made in the Note and in this Security
Instrument. Borrowcr will continue to be obligated under the Noie and this Security Instrument unless Lendsr releasa
Borrower in writing. .
MUITISTATE AD,lUSTAEtL.E RATf i~D~A-ARMI S-2-Sir?gie Fam,1y-Fannie !I~ th~torm irutrwnint $O~X ~vZ PA~mCl~~85
~ AMC 142 03~85
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