The annual percentage rate may
increase during the term of this transaction if:
[the prime interest rate of (creditor)
increases.]
[the balance in your deposit account falls
below $
.]
[you terminate your employment with (employer)
.]
[The interest rate will not increase
above
%.]
[The maximum interest rate increase at one time will be
%.]
[The rate will not increase more than once
every (time period) .]
Any increase will
take the form of:
- [higher payment amounts.]
- [more payments of the same amount.]
- [a larger amount due at maturity.]
Example based on the specific transaction
[If the interest rate increases by
% in (time
period),
[your regular payments will increase to
$
.]
[you will have to make
additional
payments.]
[your final payment will increase to $
.]] Example based on a typical transaction
[If your loan were for $
at
% for (term) and the rate increased to
% in (time
period),
[your regular payments would increase by
$
.]
[you would have to make
additional
payments.]
[your final payment would increase by $
.]]
