The West Virginia Adjustable Rate Rider — Variable(( WV ARM-VRN) is a legal document that supplements a mortgage loan agreement in West Virginia. This rider provides specific terms and conditions related to the adjustable interest rate attached to the loan. The WV ARMOR offers borrowers the flexibility to benefit from fluctuating interest rates, which may change periodically over the life of the loan. The West Virginia Adjustable Rate Rider is designed to protect both the lender and the borrower by outlining the terms and calculations for adjusting the interest rate. This document is commonly used in mortgage transactions where borrowers are seeking more affordable initial interest rates or anticipate the potential for decreasing future interest rates. Key features of the WV ARMOR include: 1. Adjustable Interest Rate: The rider specifies that the mortgage loan's interest rate is not fixed but can vary based on changes in a specified market index, such as the London Interbank Offered Rate (LIBOR) or the United States Prime Rate. 2. Adjustment Period: The rider defines the time intervals at which the interest rate will be adjusted. Typically, adjustment periods are one, three, five, or seven years, after which the rate can change based on the prevailing market conditions. 3. Index Margin: The index margin represents the percentage points added to the selected market index to calculate the new interest rate. For example, if the chosen index is the LIBOR and the margin is 2%, the new interest rate will be LIBOR + 2%. 4. Interest Rate Caps: The WV ARMOR may include caps that limit the maximum increase in interest rates during each adjustment period and over the life of the loan. This protects borrowers from excessively high rate hikes and offers stability. 5. Payment Adjustments: The rider outlines how changes in the interest rate will affect the borrower's monthly payment. It typically specifies whether the payment amount will increase or decrease based on the new interest rate. While there are no different types of West Virginia Adjustable Rate Rider — Variable Rate Notes explicitly stated, variations may exist depending on the lender's specific requirements or the type of mortgage loan. In summary, the West Virginia Adjustable Rate Rider — Variable Rate Note is a crucial component of adjustable-rate mortgages in West Virginia. It safeguards the interests of both lenders and borrowers while allowing for potential savings or adjustments based on changing market conditions. This financial tool provides borrowers with an alternative option to fixed-rate mortgages and allows them to take advantage of potential interest rate decreases during the life of their loan.