HomeMy WebLinkAbout2513 ADJUSTABLE RATE RIDER
(1 Yar lndeac - Pe~iodk and Life lnterest ~iate Caps)
TH1S ADJUSTABLE RATE RIDER is made this day of ..~'~FR.. 19..89 and is
incorporated into and shall bt deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the
"Se~urity lnstrument") of the same datc given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate
Note (the 'Note") to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (the "lxnder") of the same date and covering the property
described in the Security Instrument and located at:
. ~ 5 ~A . S . W. . FA.~ R~ R~~N . ROAt? . PA RT . S T.. . kUC.z . F.L. .3 4 9 5~3 . . . . . . . . . . . . . . . . . . . . . . . . . . .
[Property Address]
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN
THE INTEREST RATE AND THE MONTHLY PAYMENT.
Ann~no~~~ Co~~~.ti~tirs. In addition to the covenants and agreements made in the Security Instrument, Borrower
and Ixnder further covenant and agree as follow~s:
A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an Initial [nterest Rate of . 8.50 ..~lr. The Note provides for changes in the interest rate and the
monthly payments, as follows.
4. 1NTEREST RATE AND MONTNLY PAYMENT CNANGES; BORROWER'S RIGHT TO LIMIT PAYMENT
(A) Change Dates
The interest rate 1 will pay may change on the ~irst da}~ of ~APIUARY• 19 gl., and on that day '
every 12th month thereafter. Each date on which m}~ interest rate couid change is called a"Change Date."
(B) The lndex ~
Beginning with the first Change Date, m~~ interest rate will be based on an Index. The "lndex" is the w-eelcly average
yield on United States Treasury securities adjusted to a constant maturity of I year, as made available by the.Federal
Reserve Board. The most recent Index Cigure available as of the date 45 days before each Change Date is called the
"Current Index."
If the Index is no longer available, the \ote Holder w~iil choose a new~ index c~~hich is based upon comparable
information. The Note Holder wili give me notice of this choice.
' (C) Calculation of Changes
i .
! Before each Change Date, the ;~'ote Holder wiil calc~late m}~ new~ interest rate b~~ adding . . . . . . . . . . . . . . . . . .
; . . . . . . . . . . . . . . . ~ s:j.5.. percentage points ~ ~.~5.4"c) to the Current Index. The Note Holder
G wiU then round the result of this addition to the nearest one~ighth of one percentage point (0.125~~). This rounded
; amount will be my ne~~ interest rate until the next Change Date.
~
~ However, my interest rate shall never be increased or decreased on any~ single change date by more than . z..~ 8
4 percentage points( g~. from the rate of interest I had been pa~~ing immediatel}~ prior to the change date, and my
rate of interest shall never increase or decrease b}• more than . r~~ e.0 . percentage points 5.~ e~ . from the lnitial
~ lnterest Rate ~ver the term of the Note.
~ The Note Holder will then determine the amount of the monthl}~ pa~~ment that w~ould be sufficient to repay the
~ unpaid principal that 1 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 w~ill be the new amount of my monthly paZ~ment.
F •
E ~
~ B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
~ Un~form Covenant 17 of the Securit}• lnstrument is amended to read as followr.
~ Tnnsfer oithe Property or a Beneficial Intuest in Borrowrr. I[ali or any part of the Property or any interest in it is
~ sold or transferred (or if a benefcial interest in Borrower is sold or transferred and Borrower is not a natural person)
~ without Lender's prior written consent, Lender may, at its option, reyuire immediate payment in fulf 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) Borrower causes to be submitted
to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the
transf~ree; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and
that the risk of a breach of any covenant or agreement in this Security Instrumer.t 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 a!I the promises and agreements made in the N~te and in this Security
~ Instrument. Borrower will centinue to be obligated under the Note and this Security Instrument unless Lender releases
~ Barrower in writing.
~
~
~
~
MULTISTATE ADJUSTABLE MTE RIDER - t Yoar Treasury Ind~x - Single Fam~ly - FNMA/FHIMC UnHarm Inslrum~ni
V
,scres-s~ s~a~ Pa 800K V j~ PIiGE~~~ Page i of 2
z
~ ~~,y-
r,~ ai-?' ~
,~+a t.++~~.,?~ h 'wi".:'' .r¢:~,