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HomeMy WebLinkAbout0961 ~ ADJUST'ABI.E RATE RIDE~2 (t~t:f~[:RRI:D f'AYMf:N"I' FROVISIONS) TH1S ADJUST'A[3I.E RA"TI: RiDER is made ihis ..2nd.... c~f.....SEPTEMaER 1q82....., and is incorporated into and shall be deemed ta amend snd supplement the Mortgage, Decd of "Trust, or Deed to Secure Debt (the "Security Instrument") of the same date given by the unders~~ned (the "Borrower") to secure f3orrower's Adjustable Rate Nate to Securi t_y„_ Federa 1 S ayings.._ar~ci.. Loan Assoc.i ation ..,,...of ..Indian., Riyer., County ~~he "l.ender") of the same date (the "Note") and eovering the property described in the Security Instrument and located at: ............392...Sw...Pan.sX...Te.rrace .......................Port...S.t.~....Lucie.e... ~''.lor.ida....3~.4.~~....................... (Property Address) The Plote Contains P~avisions Allawing for Changes in fhe interest Rate and the ltAonthly Paymenf and for Increases in the Principal Amount fo be Repaid. ADD[TIONAi. CO~'F:NANTS. In additi~~n to [he co~~cnants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. IMTEFtEST RATE AND i410NTHLY PAYI~IENT CHANG~S The Note provides for an (nitial Rate of Interest of .~,.~.,.Q.....%. S~ction 4 of the Note provides for changes in the interest rate and the monthly payments, as follc~ws: "(A) Change Dates Beginning in 19~3..., the rate of interest I will pay may change on the ls~...... day of ihe month of ..........Q~.T,Q~~~ and on that day every 6th ~ Ilth Q 30th (Check on/y one boxJ month thereaRer. Each date on which the rate of interest could change is called a"Change Dste." . (B) The Index Any changes in the rate of interest will be based on changes in the Index. The "Index" is the monthly average yield on United States Treasury securities adjusted to a constant maturity of Q 6 months ~ 1 year 3 years (Check onlr onebox)as made available by the Federal Reserve Board. If the Index is no longer availabie, the Note Holder will choose a new index which is based upon comparable information. The ~lote Holder will gi~~e me notice ~f this choice. The first Index figure for this Note i.. .~.0_,..6 3 ~lo. It is called the "Original Index." . The most recently.a~~ai(able Inde~i~u,re as of the date ..4 5........ days before each Change Date is called thC "Current Index." T,~,~ y~~~ (C) Calculateon of Changes ~ Before each Change Date, the Note Holder will determine any change in my rate of interest. The Note Holder will calculate the amount of the differencc, if any, between the Current In~ex and the Original Index. Lf the Current Index is higher [han the Original Index, the Note Holder w•ill add the dit'i~erence to the Initial Rate of Interest. If the Current Index is lower than the Original Index, the Note t~older ~~~ill subtract the diPference from the Initial Rate af Interest. The Note Hoider will then round the result of this addition or subtraction to the nearest one-eighth of one percentage point (0.125%). This rounded amount v~~ill be the nea~ rate of interest 1 am required to pay. The Note Holder will then determine the new amount of my monthly payment that would be sufficient to repay the outstanding principal balance in (ull on the ?naturity date at my new rate of interest in substantially equal payments. The result of this calculation is ~alled the "Full Payment Amount", and it will be the new amount of my monthly payment unless I choose the amount permitted b~~ Section 4(D) helow_ (D) Borrower's Rip,ht to Defer Payment of Certain Amounts ~ Unless Sections 4(E) and 4(F) below will not ~-,ermit me to do so, t~efore any Change Date I may choose to have my new monthly payment amount limited to the amount I have been ~aying multiplied by the number I.d75 if the Change Date occurs every 6th or 12th month, or ii the Change Date occurs every 30th montt~, by the number 1.1875. This amount - is called the "Limited Payment Amount." I will give the Note Holder notice that 1 have chosen the Limited Payment Amount at least 4~........_... days before any Change Date. The Limited Payment Amount I choose could be less than the amaunt of the interest portion of the first Full Payment Amount I would have paici aRer the Change Date. If so, the Note Nolder will subtract the Limited Payment Amount from the amount of interest I:~~ould have paid and will add the difference to the outstanding principal balance of my loan each month until Ihe next Change Date. The Note Holder will also add interest on the amount of this difTerence to ~ my outstanding principal balance each m~nth. CJntil the next Change Date when the Note Holder determines my new rate of interest on my then outstanding principal balance, the rate of interest on the interest added to principal will be the rate determined in Section 4(C) above for the period I am paying the Limited Payment Amount. ~ (E) Limit on Outstanding Principal Balance The outstanding principal balance can never exceed a maximum amount equal to one hundred twenty-five percer~t (125%) of the principal amount I originally borrowed. If my choice to pay a Limited Payment Amount af[er any Change Date would cause the outstanding principal balance to ezceed that maximum amount at any~ time, t must pay the Full Payment Amo~nt unless the Note Holder agrees in writing to a dif~ferent monthly payment amount. R2quired Full Payment Amount . Beginning on ..I~ASi~Irib~~.X'...1 19..8.7...., and on each Change Date every fiPth yea: thereaf'ter, I will pay the Full Payment Amount until the next Change Date. I will also pay the Full Payment Amount for the period between the last Change Date and the maturity date. (G) Effective Date of Changes The new rate of interest will become e('f'ective on each Change Uate. 1 will pay the new amount of my monthly payment each month beginning on the first monthly payment date aRer the Change Date until the amount of my monthly payment is again changed or I have fully repaid the loan. d(lOK ~V~ PAGE (~i,s . ADJUSTAR~E RATE RIDER-single Family-7/81-FNMA Uniform Instrument (Negofive Amortization) 3009 4-82 : ~ : ~_~;4 L; ~ ~n~~ •3~S PAGE iJ~~ .