HomeMy WebLinkAbout2066 ~ ADJUSTABLE RATE RIDER 0981021365
(1 Yru Treasury lndea - R~te Caps)
THIS ADJUSTABLE RATE R1DER is made this 22~ day of jp~pRy , 19 gp , and is
incorporated into and shall be deemed to amtnd and supplement the Mortgage, Deed of Trust or Security Deed (the
"Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable
Rate Note (the "Note") to ~~V~q & I~1N ASSOCIATIQJ OF FLORI~A
(the "Lender") of the same date and covering the property described in
the Security Instrument and located at:
1453-A C~PTAINS ~I~C, BUII~II~1G 28, FORT pIERCE, FZARZD~ 34950
[Property Addras]
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE
AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S
INTEREST RATE CAN CHANGE AT ANY ONE T1ME AND THE MAXIMUM RATE THE
BORROWER MUST PAY.
ADDITIONAL COVENANI"S. 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 interest rate of 9.750 °10. The Note provides for changes in the interest rate and
the monthly payments, as follows:
4. INTERFST R~TE AND MONTHLY PAYMENT CHANGES
~ (A) Change Dxtes
The interest rate I will pay may change on the first day of ~ , 19 gl , 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 w~th 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 maturity of 1 year, as made available by the Federal
Reserve Board. The most recent Index figure 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 wiU choose a new index which is based upon comparable
information. The Note Holder will give me notice of this choice.
(C) Calculation of Changes
Before each Change Date, the Note Holder will calculate my new interest rate by adding ~g~ p~ ~
~p~~ percentage points ( 3.250 to the Cunent Index. The Note Holder will then round the
i resuit of this addition to the nearest one-eighth of one percentage point (0.125%). Subjoct 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 priacipal that I am expected 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 will be the new amount of my monthly payment.
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(D) Limits on Interest Rate Changes
~ The interest rate I am required to pay at the first Change Date will not be greater than 10 . 750 °10 or less than
~ 8. 750 °10. Thereafter. my interest rate will never be increased or decreased on any single Change Date by more
than one percentage point (1.0%) from the rate of interest I have been paying for the preceding twelve months. My
~ interest rate will never be greater than 13.750
~ (E) Effective Date ot C6anges
~ 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.
Natice 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 payment before the effective date of any change. The notice will include information required by law to be
given me and also the titie and telephone number of a person who will answer any question I may have regarding
the notice.
B. TRANSFER OF THE PROPERTY OR A BENEFICIAL IIYTEREST IN BORROWER
° Uniform Covenant 17 of the Security Instrument is amended to read as foUows:
~ Tritnsfer of t6e Property or A 8eneficia! Interest in Bomower. If all or any part of the Property or any interest in it is
sold or transferred (or if a beneficial interest in Bonower is sold or transferred and Borrower is not a natural 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, this option shall not be exercised by Lender if exercise is prohibited by federal law
~ as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Bonower causes to be submitted
~ to Lender information required by Lender to evaluate the intended transferee as if a new toan were being made to
~ the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption
and that the risk .;i a breach of any covenant or agreement in this Security Instrument is acceptable to Lender.
~ To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent
~ to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable
to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security
~ Instrumeni. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases
? Borrower in writing.
~ MULTIiTATE AWUfTABIE MTE RIDER-MM 5~1-Single family-iM~ MM fniiW Wc Ihihr~ Natr~~Mt f~ns 31~! 31ii
~ ~~-821A ~eso~~ VMV MORTGAGf iORMS ~ 1313i2~3-8100 • ieoo~5~~ ~C~~. ,r ~
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