HomeMy WebLinkAbout0928 ADJUSTABI.E RA7'E RIDEft
INTEREST RATE LIMI'I'S 50-23297680
CONVEftS10N OPTIONS
Tfitti A[)Jl'ti"1'AtiI.F. I2A'!'F. Itll)F.H is maci~~ thi~ 15TH day of JANUARY 1986
ancl is inc•orpc?rat~~ef into aru! shall bc~ de~•mt•d t~> am~~nd and supplemc~nt thc~ ~1ort};a~;e. Ik~e•d c?f'1rus1, e?r tir~•urit~~
Ik>ed, (tht~ ':S~~curily In4trum~~»t") of th~~ ,am~~ dxt~~ ~;i~•c•n by thE~ undt~rsiKn~~d (the~ "tic~rr~?n~•er") tu s~~cure~
ik?rrc~~i•er's Ac~jttstat~lc Ratt• \otr (th~~ ~Ri~tf~")!~ i!A}t!3()!t FF.DEIiAI,tir~~'IN(~tiANI) l.()A\ AtitiO( IAT!()ti (th~~
°lA~nd~~r") of the sanu~ datc~ and ~•o~•~~rin}; thc~ prop~~rt~~ c1~~s<~ril~ed in the tiecurit~~ Instrunu~nt and locat~d at:
MANSFIEI.b STRF.F:T POR'1' ST LUCIE, FL. 39952
( !'ruprrty Addre~ss )
The Note contains provisions aliowing for changes in the interest rate. If the
interest rate increases, the 8or~ower's monthly payments wii! be higher. If the
interest rate decreases, the Borrower's monthly payments wil! be lower.
AI)[)ITIONAI. ('O~'f~;NAI~"I:~. tn addition ta the ec~~•enant and akre~~~mc•nts ~nadc~ in the Se~~•urit~~ i
Instrument, f3orrower and I.c~nd~~r ft~riher co~~et~ant and aKre~ as foll~nti•s:
A. 1NTEREST RA7'~ A1VD MONfiHLY PAYn9Etti"I' ~HAiiii~~~
'Il~e ~ote pro~~des for an initial interest rat~~ of g.~~~$ 't,. ~e~ction 4 of thc• ~~~te pr~~~d~s for chanK~•s
in the interest rate and the monthl~• pa~mients, as fc>llo«~s:
~
4. IIvTE:RE~"I' KA'11~: AIvD MON7'FILI' PAl'MN:;~"I' ('HANGE~ ~
(A) Change Dates
The interest rate I will pay ma~~change ~~n the firstday~~f FEBRUAkY 8~ .~n~i on that da~•
of the mon[h everyTWELVE months thf~r~after. E~:ach dair on which my intc~rest rat~ could chanKe is called a
..C'fiange Date°.
(B) 17ie Index
Beginning wittz the first ChanKr Date, my interest ratc~ will he based on an "lndex". Tt~e Indc=x is the K•cekly
avera~r yield on United States 7'reasury securities adjusted to a constant maturit~~ c?f ONE ~.ears, as macie
a~ailable by the Federal Reserve Roard. 7'he most r, cent Index figure available as of 4.5 day:~ hefore each Chan~e
Uate is called the "Current tndex".
If the Index is nc~ tonger a~•ailabte, the :~~OIE' Nolder will c•hoose a new Index ~~~hich is based upoi~ comparable
information_ Thc~ I~bte Nolder w~ll kit•~ me notic~~ of its choice.
(C) Calculat3on of Changes
s- n.,+.. ?ti~ ~j~;=`, ta;.t~lnr «~211 ~al~niat~ mv n~~a• int~rASt rat~ hv addint TWO AND 75 j100
cXtu,r C'aCn ~,,~n,~~,a. a~o~a.. . .
perc~ntage points (~•75 to the Current Index. 77ie Note Holder K~11 then roimd the resull c,f this
addition to the nearest one-eighth of one percenta~e paint (0.125`~.). Subject to the limits stated in 5ection 4(U )
below, this rounded amount «~ill Ue my ne~v interest rat~ until the n~xt Change Date.
The Note Holder will then determine the amount of the mon[lypayment that rvou~d t~e sufficient tc? repay the
unpaid principai that [ am expected to owe at thc~ ('hange Date in fall ~n the mat uritv date at my new interest
rate in substantially equa! payments. 7'he result of this calculation pli~s any requirc~d monthly c~scrow for taxes
and insurance wil! tae the new amount of m1- monthly pavment.
(D) I3mits on Intercet Rate Chanqes
The rate of interest 1 am reyuired to pa~~ shall ne~•er be increased or decreased ~m an~~,inKle Change Date by
more than TW~ percenta~e ~ints ( 2•0~ frc~m the rate c~f interest I ha~~e
bet n payinK for the prec~edin~; TWELVE rnont i~s. btyin~erest rate aiso shalt never increase mor~~ _
[han SIX F,~~rrE•nt~kc~ ~~<?ints ( 6.~0 jr~?m tt~~~ interest ratc~
cstablitihc~d in para};raph A of this inst rumc~n,. ~1t~• intc•rc~st ratc~ tihall n~~~•E~r ~ic•crc•asc~ t?c~l~?~ti• t tic• intc•rc~st rat~~ c~stah-
lish~d in para~;raph A ~f this instrumc•nt.
(E) Effective Date of Changes
~ty new interest rate wili become efi'ective on earh Change nate. 1 wi(1 pay the amount of my new monthl~~
payment beginning on the tirst monthly pavment date after the Change Date until the amount of my monthly
payment changes again.
i (F) Notice of Changee
The i~'ote Fiolder will mail or deli~~er to me a notire before each ChanKe Uat~. The notice w~l! ad~~se me of: ,
(i) the new interest rate on my loan as of the Change Uate:
~ (ii) the amaunt of my monthly payment following the Change Date;
(iii) Any additional matters which the h`ote tiotder is requirect ta disclose; and
€ (iv) the title and tetephone numner of a person who wil) answer any yuestion I may ha~•e regardin~ the
; notice.
! (G) Option To Convert AML To Fixed Interest Rate
iic~};innin}; ~?n thE~ ftrst chanKc~ datF thc~ h~~rrower shaq have the option ~fconvertin~the Adjustablc~
intE~re~tit ratc• to a fixed interest rate.'It~e fee forexercisin~ thc: option tocom~ert to a fixed interest rate shall be I'~,
~~f thc~ ~?uttitandinK prin~ipat balance. 'Iliis ~~ption shall remain available until:
( I) tlie h~irr~wc~r exercises thc~ ~?ption ~r
(`L) the expirati~n ~f thc~ ~ap[ion ~n the fitth chanKe date.
71ie fixed interest rate available to the borrower shall be catculated by addin~ three~ighths of one percentage
point (.375) to the Federa! tiome Loan Mortgage Cvr~ration's (FHLMC) Required Net Yeld for 60daydeliti~ery
of 30 yr. fixed rate morigages and rounding the sum to the nearest one-eig}?th of one percentaRe point (.125}.
~ 'IIiP interest rate will be established upon recei~t of borrower's• written notice ~f intent to exercise the optian to
j convert.
f In order to exercise the option to convert to a fixed interest rate, the borrower must notify f{arbor Federal in
writing of his/her intent to exercise t.he option. Notice should be mailed tc~:
F'ayment Ac~justment Co-Ordinator ~
Harbor Federal Savings and I.oan As.sociatinn gpQX FAGE
('ost Of~ice Box 249
Fort ('ierce, F[. 349~i4-0'l49
6/87 LN +~4AMI~C
J.__, _ r__ ~
~