HomeMy WebLinkAbout2556 • ~ ADJUSTABLE RATE RIDE~2
1 Year Treasury lndex-Rate Caps--Fixed Rate Conversion Option)
THIS ADJUSTABLE RATE R?DER is made this a s day of ,
19 9(~ , and is incor~orated into and shall be deemed to amend and supplement the f~1 tgage, Deed f Trust or
Serurit~~ Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrow•er") to secure
Borro~~~er's Adjustable Rate Note (the "Note") to SOUTHEAST MORTGAGE COMPANY
(the "Lender") of the same date and co~~ering the property described in the Security lnstrument and located at:
6802 DONLON ROAD FORT PIERCE, FLORIDA 34951
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THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE 3
AND THE MONTHLY PAYMENT. THE NOTE LIMITS TNE AMOUN7 THE BORROWER'S Q
ADJUSTABLE INTEREST RATE CAN CHAM~~ AT ANY ONE TIME AND THE MAXIMUM
RATF TNF Rf1RRAWFR Ml ICT POV THF NATF ot Sn CnNTA1NS THE OP710N TO CON- ~
VERT THE ADJUSTASLE RATE TO A FIXED RATE.
ADDITIONAL COVENANTS. in addition to the covenants and agreements made in the Security Instrument,
Borrow•er and Len~er further covenant and agree as Collows:
A. ADJUSTABLE RATE AND MONTNLY PAYMENT CHANGES
The Note provides for an initiat interest rate of 9. 250 °'o. The Note provides for changes in the
adjustable interest rate and the monthly payments, as fotlows:
~i. ADJUSTABLE INTERFST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The adjustable interest rate 1 will pay may change on the first day of FEBRUARY , 19 93 , and
on that day every 12th month thereafter. Each dare on which my adjustable inrerest rate could change is called a"Change ~
Date."
(B) The Index (THE INITIAL INDEX VLAUE FOR THIS LOAN IS 7.8202)
Beginning ~vith the first Change Date. my adjustable interest rate will be based on an Index. The "Index" is the
~+~eekly average yield on United States Treasury securities adjusted to a constant maturity of 1 year, as made available
b~~ the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date `
is called the "Current Index." ~
If the {ndex is no longer available, the Note Holder will choose a new index that is based upon comparable ~
information. The Note Holder will give me notice of this choice.
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n (C) Calculation of Changes €
Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND THREE ~
QUARTERS percentage points ( Z. 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 limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next ~
I Change Date. ~
j The Note Holder will then determine the amount of the monthly payment that would 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 will be the new amount of my monthly payment. ~
j - (D) Limits on Interest Rate C6anges ~
s
~ ' The interest rate 1 am required to pay at the first Change Date will not be greater than 11. 250 °lo
or (ess than 7. 250 Thereafter, my adjustabte interest rate will never be increased or decreased a
~ ; on any single Change Date by more than two percentage points (2.0%) from the rate of interest I have been paying
for the preceding 12 months. My interest rate w~iU never be greater than 13.875 °lo, which is called ~
the "Maximum Rate."
~ (E) Effective Date of Changes
My new interest rate will become effective on each Change Date. 1 wili pay the amount of my new monthly pay- ~
ment beginning on the ~rst monthly payment date after the Change date until the amount of my monthly payment >
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changes again. j
(F) Notice of Changes '
~ The Note Holder will deliver or mail to me a notice of any changes in my adjustable interest rate and the amount ;
of my monthly payment before the effective date of any change. The notice will include information required by law ~
~ to be given me and also the title and telephone number of a person who will answer any question I may have regarding i
~ the notice. 3
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~ B. FIXED INTEREST RATF. OPTION I
Ti~e Note provides for the Borrower's option to con~•ert from an adjustable interest rate ~+~itn interest rate limits '
to a fixed interest rate, as follow~s:
5. FIXED INTERFST RATE OPTION
~ (A) Option to Convert to Fixed Rate I
I have a Conversion Option that I can exercise uniess 1 am in default or this Section 5(A) will not permit me
~ ~ to do so. The "Conversion Option" is my option to convert the interest rate I am req~ired to pay by this Note from ~
~ an adjustable rate with interest rate limits to the fixed rate caiculated under Section 5(B) below.
~ ~~1 The conversion can only take place on (1) if the ~rst Change Date is 21 months or less i'rom the dare of this Note,
Q the third, fourth or fifth Change Date, or (2) if the first Change Date is more than 21 months from the date of this
Note, the first, second or third Change Date. Each Change Date on which my interest rate can c~nvert from an ad-
~ justable rate to a fixed rate also is called the "Com~ersion Date." 1 can convert my interest rate only on one of these
€ Comersion Dates.
K If t want to exerrise the Conversion Option, 1 must first meet certain conditions. Those conditions are that: (i)
~E~ 1 must give the Note Holder notice that I want to do so at least 15 days before the next Conversion Date; (ii) on the
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Conversion Date, 1 must not be in default uncier the Note or the Security Instrument; (iii) by a date sp~ci~zd by the Note
- MULTISTATE ADJUSTABIE RATE RIDER-ARM PLANS 727r521 ~ 852/811-Smgle fam~ly-F~~nia Nae U~iform InstrumMt Form 3173 12/87
~ ~-861A +8~~2~ VMV MaHTGAGE FORMS • i3t3i 2938~00 • IBC~01 527 7i9~
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