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HomeMy WebLinkAbout0973 ADJUSTABLE RATE RIDER LOANI~ 22135774 (1 Yra~ Trcswry ind~x-Rate C~ps) ~ THIS ADJUSTABLE RATE RIDER is made this21gt day of August , ~987 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undetsigned (the "Borrower") to secure Borrower's Adjustable ~ Rat~ Note (the "Note") taFirst Citizens Federal Savings & Loan Association (the "Lender") of the same date and covering the property dcscribed in the Security lnstrument and located at: 2291 Sweetwater Drive, Fort Pierce, Florida 34981 (Proporty Addrasj THE NOTE CONTAINS PROVISIONS ALLOWINa FOR CHANC;ES IN THE INTEREST RATE AND THE MONTHLY PAYIIdENT. THE NOT'E LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAPI CHANQE AT ANY ONE TIME AND THE MAXIMUM RATE THE BOR- - ROWER MUST PAY. . ~ ADDITtONAL COVENAN7'S. ln addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTERESt RATE AND MONTHLY PAYMEN'f CHANGES The Note provides for an initial interest rate of 7.25p The Note provides Cor changes in the interest rate and the monthly payments~ as follows: 4. INTERESf RATE AND MONTHLY PAYMENT CHANGES ( A ) Change Dstes The interest rate t will pay may change on the first day of September , 1988 . and on that day every 12th month thareafter. Each date on which my interest rate could change is called a"Change Date." (B) The Index Beginning with tho first Change Date. my interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securitics adjusted to a constant maturity of 1 ycar. as made available by the Federai ~ Reserve Board. The most recent Index figure avaitabte as of the date 45 days before each Change Date is called the ~ "Current Index." ~ If the Indez is no longer available. the Note Holder will choose a new index which is based upon comparable ~ information. The Note Holder will give me notice of lhis choice. ~ ~ (C) Calculation of Changes . ~ ; Before each Change Date, the Note Holder wiil calculate my new interest rate by adding Tw~ and one half ' Fercentage points ( 2.500 ?o t~he Current Index. The Note Holder will then round the ~ result of this addition to the nearest one-eighth of one percantage 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 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 substantially equal payments. The result ot this calculation will be thc new amount of my monthly payment. c S (D) Umits on [nterest Rate Changes ~ The interest rate I am required to pay at the first Change Date wil) not be greater than 9.250 gb or less than r 5.250 ThereaRer. my interest rate will never be increased or dccreased on any single Change Date by more than two percentage points (2.096) from the rate of interest 1 have been paying for the preceding twelve months. My interest rate will never be greater than 13.250 `1~• ( E) Effectire Date of Changes ~ My new interesi rate will become ePFective on each Change Date. 1 will pay 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 ) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my manthly payment before the eRective datt of any change. The notice will include information required by law to be given me and also the title and telephone number of a person who will answer any question 1 may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEF[CIAL INTEREST IN BORROWER Uniform Covenant 17 of the Security Instrument is amended to read as tollows: Trnnsfe~ of the Property ar A Beneflci~l Interest in Borrower. If all ar any part of the Property or any interest in it is sotd or transferred (or if a beneficial int-.rest in Borrower is sold or transferred and Borrower is not a natural person) , without Lender's prinr written consent, Lender may, at its option, require immediate payment in full of all sums secured I by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law ' - as of the date of this Security Instrument. Lender aiso shall not exercise this option iL• (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 breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agretment that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Sccurity Instrument. Borrower will continue to be obligated under the Note and this Security (nstrument unless Lender releases Borrower in writing. ~ R 555 ~GE t7~~ BQOK kNJLTiSTATE ADJUSTABLE RATE i~ER-ARM S-2-Single Farruly-Fannk Ms~/FroddN Mac UnHorm kntrwMM Fonn 3111 3/85 ~-$ZYA 187031 , VMP MORTGA6E FORMS • 13131293~8100 • 1@001521-7291 '