HomeMy WebLinkAboutAdjustable Rate Rider ADJUSTABLE RATE RIDER 0159217728
(6-Month LIBOR Index-Rate Caps)
(Assumable during Life of Loan)
(First Business Day of Preceding Month Lookback)
This Adjustable Rate Rider is made this 20th day of APRIL,2007 , 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 the Borrower's Adjustable Rate Note (the "Note") to
W.E.��.S.FAR G.R.BAN (the
"Lender") of the same date and covering the property described in the Security Instrument and located
at: .252. . NA.E.,..CA..9042.4
(Property Address)
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST
RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE
BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE 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. INTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an Initial Interest Rate of ..7.,25Q.... %.
The Note provides for changes in the interest rate and the monthly payments as follows:
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The interest rate I will pay may change on the first day of MAY,2009
and may change on that day every 6 th month thereafter. Each date on which my interest rate
could change is called a " Change Date."
(B) The Index
Beginning with the first Change Date, my interest rate will be based on an
Index. The "Index" is the six-month London Interbank Offered Rate ("LIBOR") which is
the average of interbank offered rates for six-month U.S. dollar-denominated deposits in
the London market, as published in "The Wall Street Journal." The most recent Index
figure available as of the first business day of the month immediately preceding
the month in which the Change Date occurs is called the "Current Index."
If the Index is no longer available, the Note Holder will choose a new index which is based upon
comparable information. The Note Holder will give me notice of this choice.
ADJUSTABLE RATE NOTE-6-Month LIBOR Index
(Assumable during Life of Loan)--Freddie Mac UNIFORM INSTRUMENT
page 1
P1036A Rev.07/13/06
(C) Calculation of Changes 0159217728
Before each Change Date, the Note Holder will calculate my new interest rate by adding
five and seven-eigths percentagepoint(s) ( 5.875%) 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 Change Date.
The Note Holder will then determine the amount of the monthly 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 rate in substantially equal payments. The result of this
calculation will be the new amount of my monthly payment.
(D) Limits on Interest Rate Changes
The interest rate I am required to pay at the first Change Date will not be greater than
10.250 % or less than 5.875 %. Thereafter,my interest rate will never be increased or
decreased on any single Change Date by more than one percentage point(s) ( 1.000%)
from the rate of interest I have been paying for the preceding 6 months. My interest rate will
never be greater than 13.250
(E) Effective Date of Changes
My new interest rate will become effective on each Change Date. I will pay the amount of my
new monthly payment beginning on the first monthly payment date after the Change Date until
the amount of my monthly payment changes again.
(F) Notice of Changes
The Note Holder will deliver or mail to me a notice of any changes in my 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 to me and also the title and telephone number of a
person who will answer any question I may have regarding the notice.
page 2 P 1036C Rev.07/08/06
0159217728
B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
Section 18 of the Security Instrument is amended to read as follows:
This space intentionally left blank
Transfer of the Property or a Beneficial Interest in Borrower.
As used in this section 18, "Interest in the Property" means any legal or beneficial interest
in the Property, including, but not limited to, those beneficial interests transferred in a bond
for deed, contract for deed, installment sales contract or escrow agreement, the intent of
which is the transfer of title by Borrower at a future date to a purchaser.
If all or any part of the Property or any Interest in the Property is sold or transferred (or if
Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred)
without Lender's prior written consent, Lender may require immediate payment in full of all
sums secured by this Security Instrument. However, this option shall not be exercised by
Lender if such exercise is prohibited by Applicable Law. 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 transferee; 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
Instrument 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 all the promises and agreements made in the Note and in this
Security Instrument. Borrower will continue to be obligated under the Note and this Security
Instrument unless Lender releases Borrower in writing.
If Lender exercises the option to require immediate payment in full, Lender shall give
Borrower notice of acceleration. The notice shall provide a period of not less than 30 days
from the date the notice is given in accordance with Section 15 within which Borrower must
pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior
to the expiration of this period, Lender may invoke any remedies permitted by this Security
Instrument without further notice or demand on Borrower.
page 3 10036E REV.06/09/06
0159217728
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this
Adjustable Rate Rider.
(Seal)
ALFONSO A VARGAS -Borrower
(Seal)
ALEJANDRA VARGAS -Borrower
page 4 10036G Rev.03/30/05