HomeMy WebLinkAbout0921 ADJUSTABLE RATE RIDER
(1 Year Treasu~y Itwkx-Ratt Caps 1
THIS ADJUSTABLE RATE RIDER is made this ..19th... day of ........Drw~bst 19 .g~•..•. and is
incorporated into and shall be deemed to amend and suppicment the Mortgage, Deed of Trust or Security Deed (the
"Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable
Rate Note (the "Note") to.......AlERIF.IRSL.FEOERAL.SAYL~S•MD~lOAN••AtSOCULI~I
(the "Lender") of the same date and covering the property desc~ ibed in
ihe Security Instrument and located at:
.......@?~.Sx.+w.~i~~,.,~»ss~~~..L...,~.p..~.~ ci~*~.~_ ZLS~
. .
~Propcrly Add~css~
THE NOTE CONTAINS PROVISIONS Ai.LOWiNG FOR CHANGE~ IN TiiE INTER~S~ AA'~E
AND ~THE MONTHLY PAYMENT. THE NOTE LIMITS TNE AMOUNT THE BORROWER'S
INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BOR-
ROWER MUST RAY.
AQDITIOtiAL COYENANTS. In addition to the covenants and agreements made in the Security instrument, Borrower .
and Lendtr further covenant and agree as follows:
A. INTEREST RATE AND MONTHLY PAYMENT CHANGFS
The Note provides for an initial interest rate of ..9.ZS0.•.•••`1H- The Note provides for changes in the interest ratc and the
monthly payments, as follows: ,
4. 1!~3TERE,ST RATE AND MONTHLY PAYMENT CHANGES
( A ? Change Dates
The interest rate 1 will pay may change on the first day of ......,~M.~!~~r..~ 19.~7....., and on that day
every 12th month thereafter. Each date on which my interest rate could change is called a"Change Date."
( B ) The Index -
I Beginning with the first Change Date, my interest rate will be based on an lndex. The "Index" is the weekly average
~ yield on United States Treas~ry securities adjusted to a constant maturity of 1 year, as made available by the Federal
i Reserve Board. The most recent Index tigure available as of the date 45 days before each Change Date is called the
! "Current lndex."
~
~ If the Indzx is no longer available, the Note Holder will choose a new index which is based upon comparable
~ information. The Note Holder witl give rne notice of this choice.
~ ( C ) Calcutation of Changes
E Before each Change Date, the Note Holder will calculate my new interest rate by adding TMO, r~d..7S/100,
~ percentage points ~'~5.......`~o} to the Current Index. The 1~iote Halder will then round the
~ result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the !imits stated in Section
~ 4( D) below, this rounded amount will be my new interest rate until the next Change Date.
The tiote liolder will then determine the amount of the monthly payment that would be sufficient to repay the
f unpaid principal that 1 am expected to owe at the Chang~ Dale in ful{ on the maturity date at my new interest rate in
~ substantially equal payments. The resutt of this calculation will be the new amount of my monthly payment.
t ( D 1 Limits on Interest Rate ChanRes
E The interest rate 1 am required to pay at the first Change Date will not be greater than ....11.250._.._._...__~, ar less than
~ 7.250
~ Thereafter, my interest raee will never be increased or decreased on any single Change Date by more
than two percentage points (2.0`~'c) from the rate of interest 1 have been paying for the preceding twelve months. My
~ interest rate wili never be greater than ....14.250
~ ( E ~ ERecti~e Date of Changes
~ My new interest rate will become efTective on each Change Date. t will pay the amount of my new monthly payment
° be innin on the first monthl a ment date a~ter the Chan e Date until the amount of m monthl a ment chan es
~ 8 8 YP Y 8 Y YP Y 8
! again.
~ ( F ) Notice of Changes
~ The Note Holder will deliver or mail to me a natice of any changes in my interest rate and the amount of my monthly
i payment before the tflective date of any change. The notice will include information required by law to be given me and ~
``r also the title and telephone number of a person who will answer any question I may have regarding the notice.
s
~ B. TRANSFER OF THE PROPERTY OR A BENEFICIAL [NTEREST IN BORROWER
E Uniform Covenant 17 af the Security Instrument is amended to read as follows:
' Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is
sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person)
without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums sccured
by this Security tnstrument. However, this option shall not be cxercised by Lender if exercise is prohibited by ftderal law
as of the date of this Security Instrument. Lender also shali not exercise this option if: (a) Borrower causes to tx
submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being madc
to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan
assumption and that the risk of a breach of any covenant or agreement in this Security lnstrument is acceptable 10
Lender.
To the extent permitted by applicable law, Lcnder may charge a reasanabie fee as a condition to Lendtr's consent to
the loan assumption. Lender may aiso require the transferee to sign an assumption agrcement that is acccptable to
Lender and that obligates the transferee to kecp all the promiscs and agrcements made in the Note and in this Security
Instrument. Borrower will continue to bc qbli ated under the Alote and this Securi t t unless releases
Borrower in writing. g OOrK ~ PAGE
, MWLTISTATE ADJUSTABLE RATE R{DER-ARM S-2-Sxgle Famrty-F~w~N MN WWOrm k~tUumaft Form 3t 11 1 i 85
AMC 142 03/85
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