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Home My WebLink About0984 i ADJU9TABi.E RA.TE ~BIDER , ; ~ INTEREST RA1'E I.IMITS~ 233~64so ; CONVERSION OPTIONS ~ THIti ADJI'S"TABLE RATE RIDER is made this 19TH day of January 1990 and is incorporated into and shall be deemeci to amend and supplement the btortgage, Deed of'IYust, or Security ? Deed, (the 'Security Instrument") of the same date gi~~en by the undersigned (the "E3orrower") to secure ~ Borrower's Ac~justable Rate Note (the "Note") to NARBOR FEDERAL SAVINGS AND LOAN AS.SOCIATION (the ~ "Lender") of the same date and covering the property de.scribed in the Security lnstrument and located at: t UNiVER~I i'ii Te.RRACE, PORT Sfi LtiCZE, FL. ~ i f (}'roperty Address) ~ The Note contains p~ovisio~s allowing for changes in the interest rate. If the interest rate increases, the Borrower's m~nthly payments wili be higher. If the ~ intereat rate decreases, the Bo~~ower's monthiy payments wili be lower. # ADDITIONAL COVENANTS. ln addition to the covenant and agreements made in the Security ' Instrument, Borrower and Lender further co~~enant and agree as follows: ; 1 A. INTEREST BATE AND MONTHLY PAYMENT CHANGES i The Note provides for an initial interest rate of 8.125 ~iection 4 oithe Note pro~~des for changes I in the interest rate and the monthiy payments, as follows: i , 4. INTERESf RATE AND MONTHLY YAYMEIv'T CHANGE.S (A) Change Dates The interest rate I will pay may change on the first dayof February ,19 91 , and on that day of the month every TWELVF, months thereafter. F:ach date on which my interest rate could change is called a - "Change Date". (B) 'IUe Index Beginning with the first Change Date, my interest rate will be based on an "Index". The Index is the weekly a~~erage yield on United States 7`reasury securities adjusted to a constant maturity of oNE years, as made available by the Federal Reserve Board. 'It?e most rec~nt Index figure avaiiable as of 45 days before each Change f Date is called the "Current Index". ' lf the Index is no longer available, the Note ~iolder will ct~oose a new Inde~; whi::h is ~~d Lpon c~r~Nara~}~ information. 'It~e Note Holder will give me notice of its choice. (C) Calculadon of Changes Before each Change Date, the Note Nolder will calculate my ne~v interest rate by adding ~0 AND 750/1000 percentage points ~ 2.750 to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125~). Subject to the lim'its stated in Section 4(D) below, this rounded amount will be my new interest rate until the next'G~?ange Date. ; The Note Holder will then determine the amount of the montly payment that would be sufficient to repay the ~ unpaid princi~al that I am expected to owe at the Change Date in full on the maturity date at my new interest ' r~te in substantially equal payments. The resuft of this calculation plus any required monthly escrow for taxes i and insurance will be the new amount of my monthly payment. ' (D) Lmits on Intereat 8ate Changes ~ The rate of interest I am required to pay shall never be increased or decreased on any single Change Date by ~ more than Tj„rp percentage points ( 2.000 from the rate of interest I have been pay~ng for the preceeding TWELVE months. My interest rate also shall ne~~er increase more than SIX percenta~e p~int~s ( 6.000 from the interest rate ~ established in paragraph A of this instrument. My interest rate shall ne~~er decreasP be?ow the interest rate estab- ~ lished in paragraph A of this instrument. ~ (E) Eltective Date of Changes ~ My new interest rate will become effecti~~e on each Change Date. I will pay the amount of my new month{y payment beginning on the first monthly payment date after the Change Date until the amount of my monthly ~ payment changes again. ~ (F) Not[ce of ChangeB The Note Nolder ~rvill mail or deliver to me a notice before each Change Date. The notice KRII advise me of: ~ (i) the new interest rate on my loan ati of the Change Date: - ~ (ii) the amount of my monthly payment following the Change Irate; x (iu) Any additional matters which the Note Holder is required to disclose; and ~ (iv) the title and telephone number of a person who will answer any question I may have regarding the ~ notice. (G) Option To Convert AML To fixed Interest Rate Beginning of the first change date ihe borrower shall have the option of converting the Adjustabte interest rate to a fixed interest rate. The fee for exercising the option to convert to a fixed interest rate shall be tw~o hundred fdty doliars (~250.00). This option shall re~nain available until: (1) the borrower exerceses the option or (2) the expiration of the option on the fifth change date. The fixed interest rate available to the borrower shall be calculated by adding one half otone percentage point ~ (.50) to the Federal Home Loan Mortgage Corporation's (FHLMC) Required Net Yield for 60 day delivery of ~ ~Q- yr. fixed rate mortgages and rounding the sum to the next highest one-eighth of one percentage point ~ (.125). The interest rate will be established upon receipt of borrower's written notice of intent to exercise the ~ option to convert. My new interest rate calculated under this Section 4(G) will not be greater than the maximum ~ rate stated in Section 4{D) above. [n order to exercise the opt ion to convert to a fixed interest rate, the borrower r must n~~tify Harbor Federa! in writing of his/her intent to exercise the option in accordance with the ~ z Boox 675 ~E 9~ # k ~r~~~i_'S_' w ;.~:~~"Yrn"~Y~~YS°~*~.r'~~~-~.