HomeMy WebLinkAbout0967 G. BORROWER'S OPTION TO CONVERT
Borrower may, at Borrower's option, mociify the repayment terms of the indebtedness secured hereby on the first Change
Date. At that time, Borrower may convert the Adjustabie Rate Loan evidenced by the Note into a fixed interest rate loan to
b~ fully repaid in equal monthly payments of principai and interest over the remaining term of' the loan.
H. 1.ENDER'S NOTICE TO BORROWER
Lender's "Notice of Changes" to Borrower pursuant to paragraph 4(E) of the ivote given prior to the first Change Date
shall also rontain the following additional information periaining to Borrower's option to convert:
(i) the fixed interest rate payable by Borrower if Borrower converts into a fixed interest rate loan;
(ii) the amount of Borrower's new monthly payment at the fixed rate of interest; and
(iii) a date. not more than I S days from the date the notiee is given, by ~~~hich Borrower must execute and deliver to Lender
a d~xument in the form required by l.ender evidenring the modification uf the Note to provide a fixed interest rate.
1. SELFCTIO~I OF FIXED INTERHST RATE AND MONTHI Y PAYMF.NT ADJUSTMF.NT
Lender shall set the tixed rate of interest payable by BorroH~er at a rate identical to the sum of the Federal Home Loan Mort-
gage Corporation's Reyuired Net Yield for 60-day deli~~ery of 30 year, ~ixeci rate mortgages available 45 days prior to the
tirst Change Date plus three-eighths ot one percent (.375°'0). If no surh Required Net Yield is available, Lender will deter-
mine the fixed interest rate b~~ using a comparable figure. The ne~. ~ixed interest rate H•ill become effective on the ~rst •
Change Date if Borro~~er rhooses to ~onvcrt to a tixecl interest rate.
Borrower's monthly payments at the ne~~ fixed interest rate «~ill begin as of the f~rst monthly payment after the first Change
Qate. The monthly pa}•ment H~ill be the amoiint that is neressary to re~ay in full the principal Borrower is expected to owe
on the Change Date in substantiall}~ equal payments b}~ thc maturity date at the tixecl interest rate.
j J. BORROWER'S ELECTIOti NOT TO C0IVERT
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~ Borrower must exeY:ute and deli~~er ro Lender the document e~~idenring the modification of the Note ~~•ithin the period set in
~ Lender's notice as provided in paragraph H abo~~e. If f3orrower does not do this ~vithin the sFxci~ed date, Borrower can no
; longer exercise the option to convert. In this case, the term~ of E3orro~ver's Note w ill continue in effect ~+~ithout a~i~~ change.
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K. EFFECTIVENESS OF PROV1tilO~S
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~ Upon Borrow~er's delivery of the executed moditiration to the Note, paraera~+h A abo~e shall cease to be effective.
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~ 1~ VV~T~t.,. ~ti'~~FKr:uF. Borrower ha~ executed this Con~enihle ARM Rider.
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