HomeMy WebLinkAbout0950 ~ ~
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NON-CONVERTIBLE ADJUSTABLE I~ATE RIDER
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. . ~ (INTEREST RATE LIMITS)
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THIS ADJUSTABLE RATE R~DER is made this 31St day of January 1986
and is incorporated into and shalf be decmcd to amend and suppkmeat the Mort~age. Deed o! Tnut, or security Deed. (the "Security
Instrument'~ ot the same date given by the undenigned (the "Borrower`~ to secure Borrowtr`~ Adjustabk Rate Note (the "Noto'~ to
HARBOR FEDERAL SAVINGS AND LOAN ASSOCIA710N (the "Lender'~ of the same date and covering the property
dcscrib~d ia the Security lnstrument and located At:
2041 SE Floresta Drive, Port St. Lucie, Florida 33452
t Property Address)
~Ta NoM contsins proWsions ailowin~ tor chan~s in the int~nst rnM. H th~
lnterest rate incnases, the Borrow~~'s mon~iy paym~nts will b~ hi~her. If the
int~rost nM decroases, the 8onowers monthly payments will be low~r.
ADDITIONAL COVENANTS. In addition to the covenant and agreements made in the Security lnstrument,
Borrower and l.ender further covenant and agra as foilovrs:
A.INTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provida for an initial intereat rate of 9~ 50 96. Section 4 of the Note provides for cdanges in the iaterest rate and
the monthly payments, as follows:
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) CUan~e Dates
The interest rate I will pay may change on the first day of February .~9 g~ , and on that day of the month every
12 months th~reafter. Each date on which my interest rate couW change is called a"Change Date."
(B) Tbe Inde:
Beginning with the first Chaage Date, my interat rate will be based on an "Index.° The Index is the weelcly average yitld on United
States 'freasury securities adjusted to a constant maturity of One years, as made available by the Federal Reserve Board. 'I'he
most reant ladex figurc availabk u of 45 days before each Change Date is calltd the "Currcnt Index."
If the Index is no longer available, t6e Note Holder will choose a new Index which is aa~ed uponcompanbk information. Tbe Note
Holder will give me notice of its choia.
(C) Cakulatioa ot Chaa=es
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j Before each Change Date, the Note tiolder will calculaie my new interat rau by adding Three dfld 2~/ 1~0
! pcrcentage points ( 3~ 25 to tt~e Curreat Indea. The Note Holder will then round the result of this addition to the nearest
one{ighth of one aercentage point (0.12546)• Subjoct to the limits stated ia Section 4(D) below. this rounded amount will be my new
( int~rat rate until the new Change Date. .
~ The Noto Hotder will thcn deteRnine the amount of the moathly pay~ent that woutd be sufficient to repay the unpaid principal
that I am expected to owe at the Change Date in ful! on the maturity date at my new intecest rate in subauntiaUy equal paymenta. The
~ result of this calculation plus any rcquired monthly escrow for taxes and insuranoe will be the new amount of my monthly payment.
(D) I~mits oa Intcrest Rate C6an~a
The rate of intercst I am rcquired to pay shall never be increased or decreased on any singk Chsnge Date by more than
tW0 and 00/ 100 percentage points ( 2. 00 R6) from the rate o(interest 1 have been payingforthe prcceding
~ twel ve moesths. My interest rate also shall never increase morc than fi ve d11t1 Q~/ Z~~
percxntagc points ( 5. 96) from the fully indexed rate of 11.125 4b• My inter~st rate shall never decrease below thc
~ interest rate cscablished in paragraph A of this instrument.
~ (E) Etiettirt D~te ot Chan=es
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~ My rtew interest rate will become eifective on each Change Date. l wiU pay the amount of my new monthly payment btginning on the
& fint monthly payment date after the Change Datt until the amount of my monthly payment changa agsin.
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~ (F) Notice ot C6an~a
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~ The Note Holder will mail or deliver to me a noticx btforo oach Change Date. The noticx will advist me of:
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~ (i) the new interat rate on my loan as of the Change Date:
~ (ii) the amount of my monthly payment foUowing the Chang+e Date;
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~ (iii) Any additional matten which the Note Hotder is requirod to disclost; and
~ (iv) the titlc and tekphone number of a person who will ariswer any qt~ have re ~e notice.
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