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Home My WebLink About0954 - .ADJUSTABLE RATE RIDER ~onN No. 50-2329~+950 INTEREST RATE LIMITS . • CONVERSION OPTIONS ~ THIti ADJI'ti"fAIiLF: ItA'1'~: RInER is macte this $TH day of ~ANUARY 1~88 . and is incorporated into and shall be de~m~d !o amend and supplement the Mortgage, Deed af'IYust, or Security ~ Ih~ed, (the :tiecurity Instrument") of thc~ same date given by the undersigned (the "Borrorwei") to secure E3c?rrow~r's Ac~justablt~ Itate Note {thc~ "Notc~") to fiARE~OR FE:DF.RALSAVING~AND LOAN AS.SOCIATIOI~ (the ~ "l.c~nder") of the same date and co~~ering ihe property described in thc~ Security Instrument and tocated at: : ~ FAIRCNIL;D AVENUE PORT ST~L.UCIE. FL. 34952 ( ~'roperty Addr~ :ss ) s , The Note contains provisions afiowing for changes in the interest rate. !f the ~ interest rate increases, t4~e 8orrower's marethly paym~nts wi!! be higher. if the interest rate decreases, the Borrowef's monthly payments wfll be tower. ADDITIONAL COVE:NA,3'['S. In addition to the co~rnant and agreements made in thc~ Security ]nstrument, E3orrower and I.ender further cot~enani and agree as follows: A. INTEREST RA1'E AND MONTHLY PAYMENT CHANGES ; I The Note provides tor an initial interest rate of 000~ ~ction 4 of the Note provides Cor changes in the interest rate and the monthiy payments, as follows: 4. INTEREST RAT[; AND MON'1't~1.Y PAYb1EIv"T CtIANGE.S (A) Change Dates The interest rate I~vill pay may change on the first dayot ~~gRUARY ,1 y 89 , and on that day of the month eve~E~,~E months thereafter. Each date on which my interest rate could change is cailed a "Change Date". (B) 'It~e Ir?dex E3eginning w~th the fint Change Date, my interest rate will be based on an "lndex". The Index is the weekty avecage yield on llpited States 'IYeasury securities ae~justed to a constant maturity ofp~E years, as made a<<ailahle by the Federal Reserve Board.'l~e most recent Ipdex fgure.availaktle as of 45 days before each Change ~ Date is called the "Current Index". ~ • ~ If the Index is no longer availabte, the Note Holder wiil choose a new Index which is based upon comparable = information. '[1ie Note Holder will give me notice of its choice. (C) Calcalation of Changea ~ f3efore each Change Date, the Note Holder will calculate my new interest rate by adding~p AND 75/100 ? percentage points (2 . 75 ~ `.Y~) to the Current Index. 'ITie Note Holder will then round the result of this " addition t.o the nearest one-eighth of one percent~ge point (0.125~). Subject to the limits stated in Section 4(D) i belo~v, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine ihe amount of the montly payment that would be suflicient to repay the unpaid principal that I am expected to owe at the Change Date in fu~! on the maturity date at my new interest ; rate in substantially equal paymen~s. The resalt of this calculation plus any required monthly escrow for taxes ' and insurance witl be the new amount of my monthly payment. (D) llmite on Intereet Rate Changes , The rate of interest I am required ~o pay shall never be increa.sed or decreased on any single Change Date by . more than TW~ percentage points ¢ 00 from the ratP of interest I have been paying for the preceeding T4IELVE months.lVfy interest rate also shal! never increase more than s ~ X percenta~e points (6 ~ 00 'Y,) from the interest rate established in paragraph A of this instrument. My inten•st rate shall neverdecrease below the inter~st rate estab- lished in paragraph A of this instrument. ~ (E) Effect~ve Date of Changee My new interest rate wili become effective on each Change Date. I will pay the amount of my new monthly payment beginning on t~e first monthly payment date after the Change Date utttil the amount of my monthly ' pay,nent changes again. ~ (F) Notice of Changee ~ The Note Holder will mail or deliver t~~ 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 amaunt of my monthly payment foltowing the Change Date; ! (iii) Any additional matters which che Iv'ote Holder is required to disclose; and ~ (iv) the title and telephone number of a person who wiq answer any question I may have regarding the notice. (G) (lption To Convert AML Ta ~xed Interest Rate (~c~RinninK on the firsl change date the borrower shall have the opiion of converting the Adjustable ' intc•rc~st rate to a fixed interest rate.'It~e fee for exercising the option to convert to a fixed interest rate shaU be 1~ c~f the outstandinK principal balanee. 'Iliis option shall remain available until: (1) the horrower exercises the c~ption or (2) the expiration of the option on the fifth change date. 'llie fixed interest rate availabie to the borrower shall be calculated by adding three-eighths of one percentage point (.375) to the Federal Fiome Loan Mortgage Carporation's (FHI.MC) Required Net Yield for 60 day delivery ~ of yr. fixed rate mortgages and rounding the ~um to the nearest. one-eighth of one percentage point (.125). 'Ihe interest rate will be established upon receipt of borrower's written notice of intent to exercise the option to conv~ert. In order to exercise the option Lo convert to a fixed interest rate, the borrower must notify Harbor Fecieral in writing of his/her intent to exercise the option. Notice should be mailed to: {'ayment Adjustment Co-thdinator BOOK PAGE t7~J Narbor Federal Savings and Loan Association - Post Office Box 249 Fort ~'ierce, FI. 34954-024A 6/8? LN *4AMGC - - -