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HomeMy WebLinkAbout0945 ? ~ P.O. 80x 0562i1, Wesl Palm &acA. Flpda 33405 ~ 305196~3333 ~ ADJUSTABL~ R~4TE RIDEii (Intereat Rate L+mits) ~ THIS ADJU$TABLE RATE RIDER is made thls 31st day of March 19 87 , and is incorporated into and shall be deemed to amend and supplement the Mortg2~ge~ Deed of Trust~ or Deed ' to Secu~e Debt (the "Security Instrument") of the same date given by the undersiAned (the "Borrower") to secure 8orrowe~'s AdJustable Rate Note to BAY SAVINaS BANK~ a state banking corporation of West Palm Beach~ Florida (the "Lende~") of the same date (the "Note'~ and cove~infl the property described in the Security Instn~ment and , located at: g390 Hidden Pine Road; Ft. Pierce, Florida 33451 (Property AddressJ The Note contalns provisions allowinp lor chan~es in fhe Interest rate eve~y year sub~ect to ihe Iimit: stated In the No1e. if the inter~st ~ate incr~as~s~ the Borrower's monthly payments will be higher. It the Interest rate aecreas~=~ the Bonower's monthly psymenis will be lower. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security instrument, Bor~ower and Lender further convenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initiai interest rate oi 7.375X Section 4 of the Note provides tor changes in the interest rate and the monthly payments, as follows: "4. lNTEREST RATE AND MONTHLY PAYMENT CHAN~3E3 (A) Chan~~ Dates The interest rate i will pay may change on the first day of May , 19 88 , and on that day every 12th month thereafter. Each date on which my interest rate couid change is called a"Change Date." (B) The index Beginning with the first Change Date, my interest rate will be based on an Index. The "index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity ot 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 Index is no longer availabte, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me noti~a of this choice. ' (Cj Calculatlon of Chan~es ~ Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND ONE HAI,F - percentage points ( 2.Sp 96) to the Current Index. The Note Holder will then round the result oi this addition to the nearest one-eighth of one percentage point (0.12596). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. • The Note Holder will then determine the amount oi the monthly payment that would be suificient to repay the uhpaid principal balance of my loan 1 am expected to owe on the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result af this calculation will be the new amount of my monthly payment. ~ (D) Llmlt on Interest Rste Chan~es The rate of interest 1 am required to pay shall never be increased or decreased on any single Change Date by more than O one percentage point (1.096) Qtwo percentage points (2.096) [Check only one boxJ irom the rate of interest 1 have been paying for the preceding twelve months. My interest rate also shall never be greater than ~ . ' 12.375 ~x,. (E) Ett~ctlvi Date of Chan~es My new interest rate will become eifective on each Change Date. I will p~y 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) Notlce of Chan~e: The Note Holder will mail or deliver to me A notice of any changes in the amount ot my monthly pajrment before the eftective date of any change. The notice will include iniormation required by law to be given me and also the title and telephone number ot a person who will answer any question I may have regarding the notice." • , ~ ~•`i T` ' V ADJUSTABLE RATE RIDER-Plsn: A-2 and A-3-1•4 Family-9/83-FNMA Untform Insttumtnl !AY PRIHTIH(i CO. 888 • 6A2 • ,f ~ ' ° ! ~V~ ~ . . .