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<br />.Jf.4". ~..~..-.I
<br />HL ---002799 4,---
<br />ADJUSTABLE RATE RIDJR .J
<br />(Payment Cap)
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<br />I
<br />
<br />002583
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<br />THIS ADJUSTABLE RATE RIDER is made this ,11th,... day of ..,..........MaY-......,..,.........,......, 19,a~.....
<br />and is incorporated into and shall be deemed to amend and supplement the Mortgage. Deed of Trust, or Deed to Secure
<br />Oebl (Ihe "Security Inslrument") of Ihe same date given by the undersigned (the "Borrower") to secure Borrower's
<br />Adjustable Rate Note to .. ........ . ...........,... ...,.,...S,I,l~;i.Qx:,.Mo:r;:tgg9'la,..,ra:;,.,...... ..,..........,..,.....,.........................,.......
<br />,.. ..........'.... ............... (Ihe "Lender") of the same date (Ihe "Note") and covering the
<br />property described in the Security Instrument and located at:
<br />
<br />.., ....,.,,24.2,9...~~t..,).,8,tb..SU-,~t.,:::.,Q;an<;l..r.alaOO....NE.....fiB,aQ1.........".......
<br />[Property Address I
<br />
<br />Th. Not. contains provisions allowi... for chang.s in tho int.....trat..~..ry'
<br />y.ar. If the int.rest rate incr.a..s, the 8orrowe,'. 1II0nthlypcly.......~IIJ~.
<br />higher. If the int.....t rat. docrea..s, tho 8orrower'. lIIonthlypcly........~J.~.
<br />low.r. Th. 8o"ow.r also may be able to limit monthly fMIy_nt In_it.
<br />7%% each year.
<br />
<br />ADDITIONAL COVENANTS. In addition 10 the covenants and agreements made in
<br />Borrower and Lender further covenant and agree as follows:
<br />
<br />
<br />A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
<br />
<br />The Nole provides for an inilial inleresl rale of. .."1,.0,,,5.....,.., %. Section 4 of Ihe Nole provides forchanlles'inthe.illte@",
<br />rate and the mOnlhly payments. as follows:
<br />"4. INTEREST RATE AND MONmLY PAYMENT CHANGES ",~"_~
<br />(Al <-"'hange OIItes .......prf'^.-r,~
<br />The interest rate I will pay may change on the first day of ........,:mrtT..,.Jl!!:\~.........,...... 19,..,aS,...... and ootblltday'
<br />e"ery 12th month thereafter, Each dale on which my interesl rale could change is called a "Change Date."
<br />tH) TIle Indell
<br />Beginning with the firsl Change Date, my interest rate will be based C'n an Index, The "Index" is the weekJyav~'
<br />yield on United Stales Treasury securities adjusted to a constant maturity of I year. as made available by.t11e.Fc!deUI
<br />Reserve Board. The most recent Index figure available as of the date 45 days before each Change,Dalei.ca1~,lhe' .
<br />"Current Index. ..
<br />If the Index is no longer available. the Note Holder will choose a new indell which is hasedupon' compat'llble
<br />informat;on. The Note Holder will give me notice ofthi. choice,
<br />(0 Calculation of C111U1115
<br />Before each Change Date. the Note Holder will calcnlate my new interesl rale by adding .....1aO..'. percen~.poil1~.:
<br />(.... .l,..6..... %) 10 Ihe Current I ndell. The Note Holder will then round Ihe result of Ihis additiooto the:nearestonc.cllhth
<br />of one percenlage point (0,125%), This rounded amoulll will be my new interest rate unlil the nellt Change Date. .
<br />The Note Holder will then determine the amount of the monlhly paymentlhat would besulfi~iCl1ttorepaythe'
<br />unpaid principal balance of my loan I am expected to owe on Ihe Change Date in full on the malurity date at my n_.'
<br />interest rate in substantially equal payments, The result of this calculation is called the "Full Paymenl Amount". and:it
<br />will be the new amount of my monthly paymenl unless I choose Ihe amount permitted by Seclion 4(D)below.
<br />(D) Borrower's Ript to Limited Payment A1IIOlInt
<br />lInless Sections 4(F) and 4(0) below will not permit me 10 do so. I may choose 10 limit Ihe amount of my new
<br />momhly payment following a Change Dale 10 Ihe amounll have been paying multiplied by the number 1,075; ThisamoUl\1
<br />is called Ihe "Limiled Payment Amount." If I choose the Limited Payment Amount, I nt_tlP,e the Note Holder notlee,
<br />ihat I am doing so at least IS days before my first new monthly payment is due, ,
<br />(E) Additions to My llnpaid Principal BallUtce
<br />If I choose lhe Limited Payment Amount, my monlhly paymenl could be less than Ihe amount of the interesl portion
<br />"fa monlhly payment which then would be sufficient to rcpay my unpaid principal balance in full on Ihe maturily dale at
<br />m, currem inleresl rate III subslantially equal paymenls. If so, each momh Ihallhc Limitc>d Paymem Amount is less than
<br />Ihe interest portion, Ihe Note Holder will subtracllhe Limiled Paymenl Amounl from thc amounl of Ihe interesl pori ion
<br />and will add the difference 10 my unpaid principal balance. The Note Holder will also add inleresl on the amounl of Ihis
<br />difference 10 my unpaid principal balance each month, The imerest rate on Ihe inler..t added to principal will be Ihe rale
<br />required by Section 4( C) above.
<br />(F} Limit on Unpaid Principal Balam:e; Increased Monlhly Payment Amount
<br />My unpaid principal balance can never exceed a maximum amount equal to one hundred Iwenly-five percent (125%)
<br />ofthe principal amount I originally borrowed. My paying a Limiled Paymenl Amount after any Change Date could calise
<br />my unpaid principal balance to exceed Ihat maximum amount. If so. on the date Ihal my paying a Limited Payment
<br />Amount would cause me to exceed Ihatlimit, I will inslead begin paying a new monlhly payment unlillhe next Change
<br />Dale. The new monlhly payment will be in an amounl which would be sutlicientlo repay my Ihen unpaid principal balance
<br />in full onlhe malurity date at my current inleresl rate in subslantially equal paymenls.
<br />(G) REijuired "1111 Payment Amount
<br />"innina with Ihe fir.tmonthly paymenl after the laol Change Date, I will pay the Full Paymenl Amounl as my
<br />monthly payment.
<br />(HI Effective Date of Changes
<br />. My new inleresl rale will become eft'ecli"'l: on earh Change Datl~. I will PU) the amount of my new monthly payment
<br />begl1lning on the first mon.hly payment date after the Change Dutc: unllllhe amount ("If my monthly payment l'hangl..~
<br />agam.
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<br />AOJUST"IU RAlI 1111111-1 VMr r'~'o5llry Index (I)-Slngl. fom;ly.~-6 53. FNMA Unifo,m In.lrum.nt
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