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HomeMy WebLinkAbout0922 ADJUSTABLE RATE RIDER ( i Yar Tre~s~ry Iadex-Rate C~ps ) . ~ ~ THIS ADJUSTABLE RATE RIDER is made this 14th day of AUGUST , ~9 87 , and is incorporated into and shall be deemed to amend and supplement the Mortgage. Deed of T~ust o~ Securiry De~d (the i "Security instrument") of the same date given by the undersigned (the "Bor~ower") to secure Borrower's Adjustable ! Ratc Note (thc "Notc") to prg;RICAN PIq1~E~ S~Vj~~1G~ BANK ~t e en er ~ o the same dat~ and oovering the property described in the Security Instrument and located at: 2036 BOWIE STREET, PORT ST. LUCIE, FLORIDA 33452 IProperty Add~eas] THE NOTE CONTAINS PROVISIONS ALI.OWINii FOR CHANtiES IN THE INTEREST RATE AND THE MONTHL1f PAYMENT. THE NOTE UMITS THE AMOUNT THE BORROWER'S ' INTERE8T RATE CAN CHANOE AT ANY ONE TIME AND THE MAXIMUM RATE THE BOR- ~ ROWER MUST PAY. ; ADDITIONAL COVENAMS. In addition to the covenants and agraments made in the Socurity Instrument. Borrower ~ and Lender further covenant and agra as foltows: ( A: INTERFST RATE AND MONTHLY PAYMENT CNANGES ' The Note provides for an initial interest rate of 75 The Note provides for chang~s in the interest rate and the ~ ~ monthiy payments, as foliows: INTEREST RATE AND MONTHLY PAYMENT CHANGES f (A) C~e~e ~,et~a . ~ The interest rate 1 will pay may change on the first day of SEPTEMBER , 19 88. and on that day every 12th month thereatter. Each date on which my interest rate oould change is callcd a"Change Date." ; _ ~ (B) Ttie Index ~ Beginning with the first Change Date. my interest rate will be bascd on an Index. The "lndex" is the weekly average ``s yield on Unitod States Treasury securities adjusted to a constant mawrity of 1 year, as made available by the Federal Reserve Board. The moat ruxnt lndex figur~ availabte as of the date 45 days before each Change Date is called the ~ "Cunent Index." 5 If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable ~ a information. The Noie Holder will give me notice of this choice. ~ (C) Glcul~tIo~ oi Chaa~es ~ Before each Change Date~ the Note Holder will catculate my new interest rate by adding TWO AND 875/1000 ~ percentage points ( 2. 87S to the Current Index. The Note Holder wilt then round the k result of this addition to the neartst one-eighth of one percentag~ point (0.125~). Subject to tba limits stated in Soction ~ 4(D) below, this rounded amount will be my new interest rate untit the next Change Date. ~ The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the ~ unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in ~ substantiapy oqual payments. The result of this calculation will be the new amount of my monthly payment. ; (D) Umits oa Iaterest R~te Clatrtges The interest rate I am required to pay at th~ first Change Date will not be greater than 9. 75 °6 or less than 5. 75 Thereafter, my interest rate will never bo increased or decreased on any single Change Date by more than two percentage points (2.0%) from the rate of interest 1 have bcen paying for the prec~ding twelve months. My interest rate will never be greater than 12.75 ( E j Effectlre Date ot Cbanges ~ My new interest rate will become eflective on each Change Date. I will pay the amount of my new monthly payment E beginning on the first monthly paym~nt date after the Change Date until the amount of my monthiy payment changes t - ~ again. ~ (F) NoNce of Cla?nges . The Note i-[older will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the eftective date of any change. The notice w~ll include information required by law to be given me and also the title and telephone number of a person who wilt answcr any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 17 of the Security instrument is amended to read as follows: Trassier ot the Property w~ Beneflcial interest in Barrower. 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 tull of ali sums secured ~ by this Security instrument. However, this option shalt not bs exercised by Lender if exercise is prohibited by foderal law ~ as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Borrower causes to be $ submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made ~ 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 brcach of any covenant or agreement in this Security Instrument is acceptablt to Lender. To the extent permitted by applicable iaw~ Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender rr~ay also roquire the transferee to sign an assumption agrament that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security tnstrument. Borrower will continue to be obligated under the Note and this Security 18s~u~ ynlcss Lt~~eases Borrower in writing. BOOK 4 PACE MULTISTATE ADJUSTABLE RATE i~DE~t-AAM 5-2-Single Fam~y-Farnh MIsNFnddfs Id~c UrWoem MKtrun»M Form 31113/8S ~~2~ 187031 VMP MORTGAGE FORMS • 13131293-8100 • 18001521-7291 ` ~,.,~'~C~,'. Y ' J~:, ~ . - . _ a-~ ' . .