HomeMy WebLinkAbout1407 ADJUSTABLE RATE RIDER
233?8019
. INTEREST RATE LIMITS
CONVERSION OPTIONS
TNIti ADJL'~'TABLE: RA'I'E HI[)ER is made this 29TH day oi January 1990
and is incorporated into and shail be deemed to amend and supplement the Mortgage, Deed of Ttust, or Security
I~ed, (the "~ecurity Instrument") of the same date ~iv~en by the undersigned (the "I3orrower") to serure
f3orrower's Adjustable ftate Note (the '?v'ote") to HARBOR FEDERAL SAVIhGS AND LOAN AS.SOCIATION (the
"Lender") of the same date and coverinR the property described in the Security Instrument and located at:
BALSAM DRIVE, FORT PIERCE, FL. 34982
( f'roperty Add res.s )
The Note contafns provlsians allowing for changes in the interest rate. If the
interest rate increases, the Borrower's monthly payments will be highe~. If the
interest ~ate decreases, the Borrower's monthly payments wiH be lower.
ADDITIONAL COVENANTS. In addition to the covenant and agreements made in the 5ecurity
Instrument, t3orrower and Lender further covenant and agree as follows: ~
A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of g, Z25 tiection 4 of the Note pro~~des for changes
in the interest rate and the monthly payments, as follows:
4. INTEREST RATE AND MONTHLY PAYME;V"f CHANGES
(A) Chsnge Dates
The interest rate I will pay may change on the first day of February ,19 91 , and on that day
of the month every TWELVE months thereafier. Each date on which my interest rate could change is called a
"Change Date".
(B) ~e Index
Beginning with the first Change Date, my interest rate ~vill be based on an "Index". 'Ilie Index is the weekl~~
average yield on (Jnited States 7Yeasury securities adjusted to a constant maturity of oNE years, as made
available by the Federal Reserve Board. 'R~e most recent Index figure available as of 45 days before each Change
i Date is called the "Current Index".
If ihe Index is no longer a~~ailahfe, the Note Ho;der wzll ~ hao~z a new Index which is based upun ~om~iarabie
information. 'Ifie Note Holder K~11 gi~~e me notice of its choice.
(C) Calculadon of Changes
Before each Change Date, the Note Holder will calculate my new interest rate by adding Two AND 750/1000
percentage points ( 2, 750 to the Current Index. The Note Nolder will then round the result of this
additi~n 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.
~ The Note Holder 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
i rate in substantially equal payzr?ents. The resulc of thi.s calculation plus any required monthly escrow for taxes
and insurance will be the new amount of my monthly payment.
k (D) llmits on Interest 8ate Changea
The rate of interest I am required to pay shall never be increased or decreased on any single Change Date by
more than ~p percentage points ( 2.~00 from the rate of interest I have
i been pay~ng for the preceeding TWELVE months. Myinterest rate also shall never increase more
than SIX percenta~e ~ints ( 6.OQ0 from the interest rate
~ established in paragraph A of this inst rument. ;~1v interest rate shall never decrc~ase below the inter~st rate estab-
'g lished in paragraph A of this instrumPnt.
; (E) Egecdve Date of Changes
~ My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly
s payment beginning on the first monthly payment date after the Change Date until the amount of my monthly
~ payment changes again.
~ (F) Notice of Changee
The Note Holder will mail or deliver to me a notice before each Change Date. The notice will advise me of:
~ (i) the new interest rate on my loan as of t.he Change Date:
~ (ii) the amount of my monthly payment following the Change Date;
~ (iu) Any additi~nal matters which the Note Holder is required to disclose; and
s (iv) the titte and telephune number of a person who will answer any question t may ha~~e regarding the
~ notice.
(G) Option To Convert AML To fixed Interest Rate
Beginning of the first change date the borrower shall have the option of comrertin~ the Adjustable
interest rate to a fixed interest rate. The fee for exercising the option to convert to a fixed interest rate shall be
two hundred fifty dollars (~250.00). This option shall remain a~~ailable until:
(1) the borrower exercises the option or
(2) the expiration of the option on the fifth chan~e date.
The fixed interest rate availabie to the borrower shall be calculated by adding one half of one percentage point
~ ~~30 to the Federal Nome Loan Mortgage Corporation's (FHLMC) Required het Yield for fi0 day delivery of
~ ~ vr. fixed rate mortgages and rounding the sum to the next highest one-eighth of one percentage point
(.125). The interest rate will be established upoi~ receipt of borrower's written notice of ~ntent 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. In order to exercise the opt ion to convert to a fixed interest rate, the borrawer
~ must n~tify Narbor Federal in writing of his~'her intent to exercise the option in accordance with the
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