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HomeMy WebLinkAbout0951 ,~~~~~«~~r Nar,~,~,~~~, a~ ,~~~~w~: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES ( A ) Change Dstes The interest rate I will pay may change on the first day of DE~,~g~ , 19 gg , and on that day every 12th month thereafter. Each date on which my interest rate could change is called a"Change Date." ( B ) The Index Beginning with the first Change Date, my interest rate witl be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of 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 Indez is no ~onger availablc, the Note H~Ider will choose a new index which is based upon comparabfe information. The Note Holder will give me notice ot this choice. ( C ) Cs!culation ot Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding ~ g~~~I000 percentage points ( 2~ 875 to the Current Index. The Note Holder will then round thc " result of this addition to the nearest one-eighth of one percentage point (0.125~'0). 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 fuil on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly paymertt. ~ D~ Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 10 • 2~fl or less than 6.250 Thereafler, my interest rate will never be increased or decreased on any single Change Date by more than two percentage points (2.03'0) from the rate of interest I have been paying for the preceding twelve months. My interest rate will never be greater than 13.250 ( E ) ~fTective Date of Changes Ny new interest rate w il) become efiective on each Change Date. 1 will pay the amount of my ne~v monthly payment beginning on the first monthly paymcnt 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 monthly payment before the efTective date oC 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 I may have regarding the no"tice. B. TRAhSF~R nF THE PROPERTY OR A BENEFICIAL INTEREST I!V BORROWER Uniform Co~•enant 17 of the Security Instrument is amended to read as follows: ~ Transter of ihe Property or a Beneficiel fnterest in [3orrower. 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 aption, require immediate payment in full of all sums secured ~ by this Sectsrity Instrument. Nowever, 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 opiion if: (a) Borrower causes to be- R submitted to Lender information required by Lender to evaluate ihe intendcd iransferee as if a new loan were being madc ~ to the transferee; and (b) Leoder reasonably determines that Lcnder's security will not bc impaired by the loan assumption and that the risk of a breach of any covcnant 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. Lersder may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promiscs and agreements made in the Note and in this Security tnstrument. Borrower witt continue to be obligated under the Note and this Security lnstrum t ess Lend~rgl~ses ~ Borrower in writing. BOOK~~~ FA(~E ~AULTISTATE AD.lUSTA50D87000 00 A~ s-2-S+ngle Family-Fannie Mae/F~e~Qfe j~upj(¢r~r~ Instrument Form 3111 3/85 60-uvUS//b ~-822A ~8703~ `1!NP MCR~GtiGE FORMS • ~3t3~?93 8100 • ~300~521-7291 ~ ~ . ~ - ' ADJUSTABLE RATE RIDER ~ (1 YeAr Treasu~y Index-Rate Caps ~ THIS ADJUSTABI.E RATE RIDER is made this 13'II~ day of OCTCBER , 1987 , and is incorporated into and shall be deeme~ to amend and supplement the Mortgage, Deed oP Trust or Security Deed (the