HomeMy WebLinkAbout0982 NON-CONVERTIBLE AUJU3TABLE RATE RIDEB
(INTEREST RATE LIMIT3)
TH[S ADJUSTABLE RA7'E RIDER is made this day of . January, 1987
and is incorporated inW and shall he deemed to amend and supplement the Mortgage~ Deed of'lYust~ or Security
Deed, ~the "Securtty Instrument") of the same date glven by the undersigned (the "Borrorwer") to secure
Borrower's Ac~ustable Rate Note (the "No:
e') to HARBOR FEDERAI. SAVINGS AND LOAN ASSOCIATIOV (the
"Lender') of the same date and covering the property described in the Security lnstrument and located at:
2050 Oleander Blvd., Apt. 202, Bldg IV, Ft. Pierce, Fl. 33450
(Property Address)
The Note contains p~ovisions allowin~ for changes in the interest rate. If the
interest rate In~resses, the Borrowa~'s monthly payments will be higher. ff the
interest rate decreases, the BoROwer's monthiy payments will be lower.
ADDITIONAL COVENANTS. In addition to the cov~enant and agreements made in the Security
Instrument~ Borrower and Lender further cov~enant and agree as follows:
A. INTERE3T BATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of 8. 5 0 0 Section 4 of the Note provides for changes
in the interest rate and the monthly payments, as follows: '
4. INTEREST RATE AND biONTHLY PAYMENT CHANGES
(A) Cbange Dstes
The interest rate I will pay may change on the first dayof September ,19 8 7 , and on that day
of the month every twe lvemonths thereafter. Each date on which my interest rate co~ild change is called a
"Change Date".
(B) ~e Indez
Beginning with the first Change Date~ my interest r$te will be based on an'Index°. The Index is the weekly
average yield on United States 'IYeasury securitles ad,justed to a constant maturity of one years, as made
~ available by the Federal Reserve Board.'Ihe most recent Index figure available as of 45 days before each Change
Date is called the "Current Index".
If the Index is no longer available, the Note Holder will choose a new Index which isbased upon comparable
informateon. The Note Holder will ~ve me notice of its choice.
(C) Glcnladon of A?anges
: Before each Change Date~ the Note Holder• will calculate my new interest rate by adding Three and 2 5/ 10 0~
percentage points ( 3. 25 to the Current Index. 'It?e Note Holder will then round the result of this
addition to the nearest one-eighth of one percentage point (0.125~6). Subject to the limits stated in Section 4(D)
below, this rounded amount will be my new interest rate until the new Change Date. ~
The Note Holder will then determine the amount of the montlypayment thatwould be sufficient to repaythe ~
i unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest '
` rate in substantially equal payments. The result of this calculation plus any required monthly escrow for taxes
and insurance will be the new amount of my monthly payment.
' (D) ~tmiLs on Interest Rate ('~anges
' The rate of interest I am required to pay shall never be increased or decreased on anysingle Change Date by
- more than TWO PQ~Qn~Be Po~~ ( 2. 00 from the rate of interest I have
~ been paying for the preceding twelve months. My interest rate also shall nev~er increase more
than Five percentage points ( 5. 00 from the fuDy indexed rate
of 9. 5 0~%. My interest rate shall never decrease below the interQSt rate established in paragraph A of this
? instrument.
(E) ffiecHv~e Dste af Changes
My new interest rate will become effectave on each Change Date. I will pay the amount of .ny new monthly
payment be~nning on the first monthly payment date after the Change Date until the amount of my monthly
payment changes again.
(F) Notice of Changes
1fie Note Nolder will mail or deliver to me a notice before each Change Date. The notice will advise me of:
(i) the new interest rate on my loan as of the Change nate:
(i~) the amount of my monthty payment following the Change Date;
(iii) Any additional matters 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
F notice.
IN WI11vE8S WHE~EOF,Borrower lus ezecut~d thie ABLE 8A Bider.
~ s~5~o ~j <
W . L . McLENDON ~B°"°""'
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