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Home My WebLink About0541 . ~ ~ , ADJUS'I'ABI~E RA'1'E ~tIDER 23376906 INTEREST RA1'E LIMI1'S CONVE~tSION OPTIONS THIti ADJI'~TAI;LE RATE: RIDER ~s made this 24TH day of January 1990 and is incorporated inta and shall be deemed to amend and supplement the MortgaKe, Dee~ of'IYust, or tiecurity Ik>ed, (the "tiecurity Instrument") of the same date Ri~~en by the undersi~ned (the "E3c>rrower") to sc~cure ~rrower's Ac~justable Rate Note (the "tiote") to HARBOR FEDERALSAVINGSAND LOAN AS.ti(X'IATION (the "Lender") of the same date and covering the property described in the Security lnstrument and located at: 4168 A GATOR TRACE VILLA CIRCLE, FORT PIERCE, FL. 34982 ( F'roperty Addres.s 1 The Note contains provisions allowing tor changes in the interest rate. If the interest rate increases, the Borrower's monthly payments wiil be higher. If the interest rate decreases, the Borrower's monthly paymenta will be lower. ADDITIONAL COVENANTS. In addition to the co~~enant and aRreements made in the tiecuritv lnstrument, Borrower and Lender further co~~enant and a~ree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES 'IY~e Note provides for an initial interest rate of 8-125 Section 4 of the tiote pro~~des for chanRes in the interest rate and the monthly pa~~rnents, as follows: 4. 1N7'EREST RATE AND MONTNLY E'A1;NENT CHANGES (A) Change Datee The interest rate I wiil pay may change on the first dayof February .1 g 91 , and on that da,y of the month everv TwELVF, months therPaftPr. Fa~h ~a[P nn u•F~i(`I~ mv intnraet iV4~u " ",.a "J ' ~ttuti~~ iJi(StRiila "Change Date". (B) 'I~e Index Beginning with the first Change Date, my interest rate will be based on an "Index". The IndPx is the weekly average yield on United States 'IYeasury securities adjusted to a constant maturity of oNE years, a.s made available by the Federal fteserve Board. The most recent Index figure available as of 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 information. 'I~e Note Holder will give me notice of its choice. (C) Calculadon of Changes Before each Change Date, the ;~3ote Holder wilt calculate my new interest rate by adding TWO AND 750l1000 percentage points ( 2.750 to the Current Index. 'Rie Note Holder will then round the resutt of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. 'I~e Note Hotder will then determine the amount of the montly payment that would be sufficient to repay the unpaid principal 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 plus any required monthly escrow for taxes and insurance will be the new amount of my monthly payment. ! (D) I3mite on Interest Rate Changes The rate of interesL I am reyuired to pay shall ne~~er be increased or decreased on anysingle Change Date by ; more than TWO percentage points ( 2.000 `fi) from the rate of interest I have ; been pa~~ng for the preceedinR Tw'ELVE months. Myinterest rate also shall ne~~er increase more than S2X percentaKe points ( 6.000 ~;,1 from the interest rate established in para~raph Aof this instrument. My intE~r~st rate shall nP~-c•r decrease below the interest rate estab- ~ lished in paragraph A of this instrument. ; (E) Elfecdv~e 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 pay~nent date after the Change Date until the amount of my monthly ~ payment changes again. ~ (F) Nodce of Changes The Note Holder will mail or defiver to me a notice before each Change Date. The notice will advise me of: ~ (i) the new interest rate on my loan as of the Change Date: ~ (ii) the amount of my monthly payment following the Change Date; ~ (iri) Any additional matters which the Note Holder is required to disclose; and E {iv) the title and t~lephone number of a person who will answer any question I may have regarding the notice. ~ (G) Option To Convert AML To ~xed Interest Rmte E3eqinning of the first change date the borrower shall have the option of converting the Adjustablc~ interest rate to a fixed interest rate. The fee for exercisin~ the option to convert to a fixed interest rate shall he two hundred fifty dollars ($250.OOj. Thi.s o~~tion shall remain available until: (1) the borrower exercises the option or (2~ the expiration of the option on the fifth chan~e date. The fixed interest rate available to the borrower shall be calcula[ed by addinA one half of one percentage point ~ (.~~)oto the Federal Home Loan Mort~a~e Corporation:s (FHLMC) Required n'et 1'ield for 60 day c~elivery ~f ~ 3 ~r. fixed rate mortgages and rounding the sum to the next highest one-eighth ~f one percentage pc~int ~ (.12:i}. The interest rate will be established upon receipt of borrower's written notice of intent to exercise the option to convert. b4y new interest rate calculated under this Section 4(G) will not be greater than the maximum ~ rate stated in 5ection 4~D) above. In order to exercise the option to con~~ert to ~ fixed interest rate, the borrower ; must n~~tify Harbor Federal in writinR of his'her intent to exercise the option in accordance with the ~ i 6o~K675 <<,~~ 5~i ~ ~ - ~ ~ ~ ~ ~ ~ ~ ~