HomeMy WebLinkAbout0806 ~ ADJUSTABLE RATE RIDER
~ 23380106
(INTEREST RA'I'E LIMITS)
THIti ADJI'bTAl3LE RA1~: HII)F:K is made thi~6TH day of January 1990
and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of 71-ust, or ~ecurity
Deed, (the .tiecurity Instrument") of the same date gi~•en by the undersigned (the "I3orrorwer") to secure
Horrower's Ad,justable Rate Note tthe "Note") to NARBOR FEDERAL~+AV1NGtiAND LOAN A~.ti(7ClATlON (the
"Lender") of the same date and c~~verin~ the pro~x rty described in the :+ecurity lnstrument and located at:
1821 AIROSO BLVD. , PORT ST LUCIR, FL. 34983
(Prope~rtS~ Addrt:kti)
The Note contair+s provisions ailowing for changes in the interest rate. 11 the
interest rate increases, the Borrower's monthty payments will be high~r, il the
interest rate decreases, the Borrower's monthiy payments wiN be lower.
ADDITIONAL COVENAN"Cti. In addition to the co~~enant and agreemenis made in the ~ec•urity
Instrument, Borcower and Lender lurther co~~enant and aKree as foltows:
A„ IIVTERE3'i' RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of 10 . 375 ~ction 4 of the Note pro~ides for changes
in the interest rate and the monthly pavments, as f~llows:
4. INTERES't RATE AND MONTHLI' PAl'11iENT CHANGEti
(A) Change Datee
The interest rate I will pay may change on the first dayof February ,1 g 91 , and on that day
of the month every T~"~LVE months thereafter. Each date on which my interest rate could change is called a
"Change Date".
(B) °Itie Index
Beginning with the first ChanKe Date, my interest rate will be based on an "Ind~x". The lndex is the weekly
average yield on United States 'IYeasury sec•urities adjusted to a constant maturity of ONE years, as made
available by the Federal Reserve Eioard. 'It~e most recent Index figure available as of 45 days befure each Change
Date is called the "Current Index".
lf the Index is no longer a~~ailable, the ~Iote Nolder will choose a new Index which is based upon comparable
informatian. Tltie ?~ote Holder will gi~•e me notice of it~s choice.
(C) Calculation of Changes
Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND 754/lOdO
percentage points ( 2• 750 to the Current Index. 'Che Note Holder wiil then round the result of this
addition to the nearest one-eighth of one perrentage point (0.125~~). Subject to the limits stated in Section 4(D)
~ below, this rounded am~~unt will be m~~ nev?~ interest rate until the n~xt Chan~e Date.
The Note Holder will then determine the amount of the montly payment that would be sufficient to repay the
s 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 equa{ payinent~s. The result of thi.s calculation plus any required monthly escrow for taxes
~ and insurance will be the new amount of my monthly payment.
(D) limits on Interest Rate Ch$nges
; 1fie rate of interest I am reyuired to payshall ne~~-er be increased or ~iecreased on any single Change Date by
morc~ than TWO pe~rcc~ntaKe points ( 2,OQ0 from the rate of interest I hav~e
~ been payhnK for the preceedin~ TWELVE months. My interest rate also shall never increase more
i than SIX p~rc•entaRe poinGS ( 6.000 from the interest rate
€
~ established in !'aragraph A of this instrumE~nt. i~1y intFrest rate shall never decrease below the interst rate esta -
~ lished in f'aragraph A ot' this instrument.
~ (E) Effecdve Date of Gfianges
My new interest rate wili become effecti~~e 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
~ payTnent changes again.
~ (F} Notice of Cha~iges
~ The Note Holder w~ill mail or deliver to me a notice before each Change Date. The nocice will advise me of:
~ ( i) the new in~erest rate on my loan a5 of the Change Date:
(ii) the amount of my monthly payment following the Change Date;
(iii j Any additional matters which the Note Holder is required to disclose; and
( iv) the title and teiephone number of a person who will answer any question I may have regarding the
notice.
IN WITrIESS ,~~.~~,,~Borrower ha.s e uted AD.NSTABLE RATE Rider.
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