HomeMy WebLinkAbout0929 ADJUSTABLE RATE BIDER
23367137
(INTEREST RA1'E LIMITS)
THIti ADJUS'TABLE RATE RIDER is made thi~6T~ day of January 199Q
and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of'Il-ust, or Security
Deed, (the "Security Instrument") of the same date given by the undersigned (the `Borrorwer") to secure
Borrower's Ac~justable Rate Note (ihe "Note") to }iARBOR FEDERAL SAVINGS AND LOAN ASSOCIATION (the
"Lender") ot the same date and covering the property described in the Security Instrument and located at:
LAVINA CIRCLE, PORT ST LUCIE, FL. 34952
3
( f'roperty Address ) ~
The Nota contains provisions aliowing for changes in the interest rate. If the ~
interest rate increases, the Bo~rower's monthly payments will be higher. If the ~
intereat rate decreases, the Borrowe~'s monthly payme~ts wiil be lower. ~
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ADDITIONAL COVENANTS. In addition to the covenant and agreements made in the Security
instrument, Borrower and Lender further co~~enant and agree as [ollows: ~
A, INTEBEST RATE AND MOI~'THLY PAYMENT CHANGES ~~~,I,
The Note provides for an initial interESt rate of 8.125 'k~. Section 4 of the Note provides for changes ~~I
in the interest rate and the monthly payments, as follows:
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4. INTEBEST RATE AND MONTHLY PA1'ME~IT CHANGES ~
(A) Chu~ge DaLes ~
The interest rate I will pay may change on the first day of February ,19 91 , and on that day ~
of the month every T~L~ months thereafter. Each date on which my interest rate coutd change is called a ;
"Chahge Date°.
(B) 'Ibe Index
Beginning with the first Change Date, my interest rate w~ll be based on an "Index". 'll~e lndex is the weekly
average yield on United States 1Yeasury securities ac~justed to a constant maturity of ~NE years, as made
available by the Federal Reserv~e Board. 'It~e most recent Index figure availabie as of 45 days before each Change
Date is called the "Current Index".
If the Index is no longer available, the Note Holder K~II choose a ~iew Index which is based upon comparable
' information. 'Ihe Note Holder will give me notice of its choice.
(C) Calcal,ation of Changes
Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND 750/1000
percentage points ( 2.750 `X~) to the Current Index. 'Ihe Note Holder will then round the result of this
addition to the nearest one-eighth of one percentage point (0.125~6). Subject to the limits stated in Seciion 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 montly payment that would be su~cient to repay the
~ unpaid principal that I am expecied to owe at the Change Date in full on the maturity date at my new interest
~ rate in substantially equal payments. The result of this calculation plus any required monthly escrow for taxes
` and insurance will be the new amount of my monthly payment.
(D) limits on Intereat Rate Changes
~ 'Ihe rate of interest I am required ta payshall ne~~er be increased or decreased on anysingle Change Date by ;
~ more t.han Two percenia~e points ( 2.000 from the rate of interest I have ~
~ been paying for the preceedin({ TwELVE months. My interest rate also shall never increase more ~
than SIX percentage points ( 6.000 from the interest rate
established in Paragraph A of this instrument. bty interest rate shall ne~~er decrease below the interst rate estab- ~
lished in ~aragraph A of this instrument. 4
~ (E) Eflecl3ve Date of Changes
My new interest rate will become effective on each Change Date. I 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) Nodce of Changee
The Note Holder will mail or deliver to me a notice before each Change Date. The notice ~vill advise me of: 4
~ (i) the new interest rate on my toan as of the Change Date: ~
(ii) the amount of my monthty payment following the Change Date;
(iu) Any additional maLters which the Note Holder is required to disciose; and
(iv) the title and telephone number of a person who will answer any question I may have regarding the i
notice. I
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IN WITNESS WHEQEOF,Borrower hae executed this ADJUSTABLE RATE Sider. +
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~ 1020726
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~ ~90 JAN 23 PI2 CFiARLES DE BONO
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(Sign Original Only)
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