HomeMy WebLinkAbout1503 SEC~~N ('I ll~ar Tt+easury Index - Rate Caps)
FIRST~ ADJUSTABLE RATE RiDER
THIS ADJUSTABLE RATE RIDER is made this 22ND ~y of _ JANUARY ~ ~g__ 90
and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Oeed
(the "Sscurity InstrumenY') of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable
Rate Note (the "Nate") to SECURITY F1RST FEDERAL SAVINGS 8 LOAN ASSOCIATION (the "Lender") of the same
date and covering the property described in the Security Instrument and located at:
BO~WLING GREEN DR.
FT. PIERCE, FL 34951
_ - -
PFiOPERTV ADOFiESS
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CNANGES IN THE INTEREST RATE AND THE
MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN
CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY.
ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower
and Lender further covenant and agree as follows:
A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial rate of 8• OOOq,b, The Note provides for changes in the interest rate and the monthly
payments, as follows:
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The interest rate I will pay may change on the first day of F E B R U A RY ,19_ _91, 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 will be based on an Index. The "Index" is the weekly average
yield on United States Treasury securities adjusted to a constant maturiry of 1 year, as made available by the Federal
Reserve Board. The most recent Index 6gure available as of the date 45 days before each Change Date is called the
"Current Index"
If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable informa-
tion. The Note Holder will give me notice of this choice.
(C) Calcutation of Changes
Before each Change Date, the Note Holder will calculate my new interest rate by adding 2. 7 50 _
'i _ percentage points ( 2•~ 5~i6) to the Current Index.
E The Note Holder will then round the result of this addition to the nearest one-eighth of one pe~centage point (0.125~ib).
; 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 1 am expected to owe at the Change Date in fuU on the maturiry date at my new inierest rate in substantially
~ equal payments. The result of this calculation will be the new amount of my monthly payment.
E
(D) Limits on Intenest Rate Changes
The interest rate I am requireti to pay at the first Change Date will not be greater than 10. 000 a~ or less than
_ 7~QQ~~yo, Thereafter, my interest rate will never t~e increased o~ decraased on any single Change Date by more
than two percentage points (2.0%) from the rate of iMerest I have been paying for the preceding twehre months. My interest
~ rate will never be greater than _ 14 . Q04___ _~ib, nor less than '7 . 000 subsequent to the first twelve months.
~
~ (E) EHective Date of Changes
~ My new interest rate will b~come 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 untif the amount of my new monthly payment changes
again. •
r 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
k payment before the effeciive date of 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 notice.
E B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
: Uniform Covenant 17 of the Security Instrument shall remain in full force and effect until the lender (mortgagee)
~ assigns his interest in the Securiry Instrument to the Federal Nationai Mortgage association o~ the Federal Home Loan
~ Mortgage Corporation. Upon such assignment Uniform Covenant 17 of the Security instrument is amended to read as
follows:
Ti~ansfer of the Prc~~erty or a 8eneficial Interest in Borrower. 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 natu~al person) without
Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this
~ Security Instrument. However, th's option shall,xwt be exercised b~r~Lgn~er if exercise is prohibited by federal taw as
` of the date of this Security Instrument. Lender also shall rlot exercise this option if: (a) Borrower causes to be
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~ (COfltkltNd Ort b~Clt)
~ sooK 6?4 ~~E 1503
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