HomeMy WebLinkAbout0917 paymeat aqunl to the aawunt I have beea paying multiplied by ths
numbar 1.075. Duriag the thirtieth year of the loan, I must pay
the Full Payment Amount. I will pay the new amwunt of my aoathly
. peyaent until it changes in accordance with Section S or Sectioa
6(C) below. ~
(B) Nonthly Payment Freeze Opiion. Instead of hnving vy
sonthly payeieats increased during the second and third ysars that
my loa.n is outstanding, I may elect to have my aanthly payesnt
frozan for the second. and/or third years that the loaa ~ia
outstanding at the monthly payment amount dus during the
preceding year. Alternatively, I may elect to have tbe Nota
Holder recalculata my Full Payment Amount as set forth in Section ~
3 and .I will.then make payments of the Full Payment Aoount ~
beginning with the first monthly payment due after my election.
On the third and on each subsequent anniversary of the date my
first monthly payment is due until, but not including~ the
twenty-ninth anniversary date, I may only pay the Full Paya~ent
Amount or elect to have my payment edjusted as specified in
Section 5(A). During the thirtieth year of the loan, I must pay
the Full Payment Amount. The Note Holder will notify me as
provided in Section 7 below prior to each of the anniversaries of
the date my first monthly payment is due and will inform me that
I have the option set forth in this Section 5, subject however,
to the limitations imposed by. Section 6(C). I must notffy the
Note Holder of my election prior to the_respective anniversary
date, or else I will be required to make the paymants provided
for in Section S(A). - -
6. CHANGES IN HY tJNPAID PRINCIPAL BALAAfCE
(A) Additions to My Unpaid ~rincipal Balance
Each of my monthly payments could be less than the amount of
the interest portion of e monthly payment which then would be _
sufficient to repay my unpaid principal balance in full on the
maturity date at my current rate of interest in substantially
equal payments. If so, each month that the ~mount of my monthly
payment is less than the interest portion, the Note Holder aill
subtract the amount of my monthly payment from the interest
I~ portion and will add the difference to my unpaid priacipal
i balance. The Note Holder will also add interest on the amount of
~ this difference to my unpaid principal balance each month. The
~ rate of interest on the interest added to principal will be the
rate required by Section 2 above.
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(B) Reductions in My Unpaid Principal Balance
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My monthly payment could be greater than the amount of a
monthly payment which then would be sufficient to repay my unpaid
principal balance in full on the msturity date at my current rate
of irtterest in substantially equal payments. If so, the Note
Holder will subtract the difference from the unpaid balance of my
loan eech month until the next Interest Change Date as if I had
~ made a partial prepayment under Section 8[of the NoteJ.
~ (C) Limit on Hy Unpaid Principal Balance; required Full
~ Payment Amount
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~ My unpaid principal balance can never exceed a maximum
a amount equel to one hundred twenty-five percent (125x) of the
~ principal emount I originally borrowed. If my paying the amount
€ of my monthly payment calculated under Section 5 above after any
` Interest Change Date would cause my unpaid principal balanca to
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; exceed that maximum amount at any time, I will instead pay the '
~ Full Payment Anwunt as my monthiy payment until the next Payment
y Change Date. "
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~ (FL) FLEX RIDER - 3 ~ P~
11/83
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