200005730 - Laserfiche WebLink

Browse

0"00005730 LOAN #: 8988758 -30756 FIXED /ADJUSTABLE RATE RIDER (LIBOR Index - Rate Caps) THIS FIXED /ADJUSTABLE RATE RIDER is made on this 21ST day of JUNE, 2000, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument ") of the same date given by the undersigned (the "Borrower ") to secure Borrower's Fixed /Adjustable Rate Note (the "Note ") to NORTH COUNTY REAL ESTATE, INC. dba HMC FUNDING, A CALIFORNIA CORPORATION (the "Lender ") of the same date and covering the property described in the Security Instrument and located at: 14030 70TH ROAD SOUTH DONIPHAN, NE 68832 THE NOTE PROVIDES FOR A CHANGE IN THE BORROWER'S FIXED INTEREST RATE AND TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT THE BORROWER'S ADJUSTABLE RATE CAN CHANGE AT ANYONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 11.750 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: 1. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (a) Change Dates The initial fixed interest rate will change to an adjustable interest rate on the 1sT day of JULY, 2002, and on the first day of the month every 6TH month thereafter. Each date on which the adjustable interest rate could change is called a "Change Date. " (b) The Index Beginning with the first Change Date, the interest rate will be based on an Index. The "Index" is the average of the London interbank offered rates for six month dollar deposits in the London market based on quotations at five major banks ("LIBOR"), as set forth in the "Money Rates" section ofThe Wall Street Journal, or ifthe Money Rates section ceases to be published or becomes unavailable for any reason, then as set forth in a comparable publication selected by the Lender. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." (c) Calculation of Changes Before each Change Date, the Lender will calculate my new interest rate by adding six percentage point(s) ( 6.000% ) to the Current Index. The Lender 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 1(d) on the following page, this rounded amount will be the new interest rate until the next Change Date. The Lender will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal balance as ofthe Change Date in full on the Maturity Date at the new interest rate in substantially equal payments. The result of this calculation will be the new monthly payment. (d) Limits on Interest Rate Changes The interest rate at the first Change Date will not be greater than 12.750% or less than 11.750 %. Thereafter, the adjustable interest rate will never be increased or decreased on any Fixed /Adjustable Rate Rider - Libor Page 1 of 3 P5386RDU 909