HomeMy WebLinkAbout0946 NON-CONVEItTIBLE ADJUSTABLE RATE RIDER
(INTEREST RATE I.IMITS) 23261520
18fiH MARCH 1987
THIS ADJUSI'ABLE RATE RIDER is made this day of
and is lncorporated into and shall be deemed W amend and supplement the Mortgage~ Deed of'IYust, or Security
Deed, (the "Security Instrument") of the same date giv~n by the undersigned (t.he "Borrorwer") to secure
Bonower's Ac~ustable Rate Note (the "Note") to HARBOR F'EDERAL SAVINGS AIYD LOAN ASSOCIATION (the
"Lender") of the same date and co~~ering the property described in the Security Instrument and located at:
604 CBDAR PLACg FT PIBRCB, FL. 33450
(Proper~ty Address)
The Note contalns provislon= allowi~g for changes in the inte~est rate. !f the
interest rate increases, ti~e Borruwer's monthly payments wU! be hlghe~. If the
interest rate decreases, the Borrower's monthly payments will be lower.
ADDITIONAL COVENAN'!'S. In addition to the covenant and agreements made in the Security
Instrument, Borrower and Lender further covenant and agree as follows:
A. INTEBEST RATE AND MONTNLY PAYMENT CHANGES
The Note provides for an initial interest rate of 50 ~f~. Section 4 of the Note provides for changes
in the interest rate and the monthly payments, as follows:
4. INTEREST RATE AND MON'I'~iLY PAYMENT CHANGES
(A) Change Datee
The interest rate 1 will pay may change on the first dayof APRIL g88 , and on that day
of the month everyT~L~ months thereafter. Each date on which my interest rate coutd change is called a
"Change Date".
(B) T6e Index
Beginning with the ~rst Change Date, my interest rate will be based on an "Index". The Index is the weekly
average yield on United States 1Yeasury securities ac~justed to a constant maturity of ~N$ years, as made
available by the Federal Reserv~e Board.'Rie most recent Index figure availabte as of 45 days before each Change
Date is called the "Current Index". .
If the Index is no loriger available, the Note Holder will choose a new Index which is based upon comparable
information. The Note Hotder will git~e me notice of its choice.
(C) Calcnladon of Changes
Before each Change Date, the Note Nolder will calculate my new interest rate by addingT~gg AND 25/100
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~). Subject to the limits stated in Section 4(D)
below, this rounded amount will be my new interest rat+e until the new Change Date.
The Note Holder will then determine the amount of the montlypayment that would be sufficient to repay ihe
unpaid principat 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) LimitB on Intereet Rate Changea
The rate of interest I am required to pay shall never be increased or decreased on anysingle Change Date by
more than T~ percentage points (2 ~6) from the rate of interest [ have
been paying for the preceding ~LVE months. My inter~st rate atso shall never increase more
than ~I~g percentage points ( 5.00 from the fully indexed rate
of 9• 125 My interest rate shal! nev~er decrease below the interest rate established in paragraph A of this
instrument.
. (E) F.Qective Date of Q?enges
~ My new interest rate will become e8'ective on each Change Date. I will pay the amount of my new monthly
payment heginning on the first monthly payment date after the Change Date until the amount of my monthly
payment changes again.
(F) Nodce oi Chauges
The Note Holder 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 Date:
(ii) the amount of my monthly payment foflowing the Change Date;
(iu) r+?ny additional matters which the Note Hotder is required w disclose; and
(iv) the title and telephone number of a person who will answer any question I may have regarding the
notice.
IN WITNE83 WHEBEOF,Borrower haa ezecuted tble ADJUSTABLE RATE Bider.
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