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payment equal to the amount I have been paying multiplied by the
• number 1.075. During the thirtieth year of the loan, I must pay
the Full Payment Amount. I will pay the new amount of my monthly
payment until it changes in accordance with Section S or Section
6(C) below.
(B) Monthly Payment Freeze Option. Instead of having my
monthly payments increased during the second and third years that
my loan is outstanding. I may elect to have my monthly payment
frozen for the second and/or third years that the loan ~is
outstanding at the monthly payment amount due during the
preceding year. Alternatively, I may elect to have the Note ~
Holder recalculate my Full Payment Amount as set forth in Section
3 and I will then make payments of the Full Payment Amount
beginning aith the first ~noathly 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 Payment
Amount or elect to have my payment adjusted as specified in
Section 5(A). During the thirtieth year of the loan, I must pay
the Full Payrnent 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 heve the c~ntion cat fnrt~? _r fl;_~ c~~~~~^ sub'~~i ~
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to the limitations imposed by Section 6(C). I must notify the
Note Holder of my election prior to the respective anniversary
date, or else I will be required to make the payments provided
for in Section 5(A).
6. CHAlJGES IN MY UNPAID PRINCIPAL BALAIvCE
(A) Additions to My Unpaid Principal Balance
Each of my monthly payments could be less than the amount of
the interest portion of a monthly payment which then would be
sufficient to repay my unpaid principal balance in fuil on the
maturity date at my current rate of interest in substantially
' equal payments. If so, each month that the amount of my monthly
! payment is less than the interest portion, the Note Holder will
; subtract the amount of ray monthly payment from the interest
j portion and will add the difference to my unpaid principal
! balance. The Note Holder will also add interest on the amount of
f this difference to my unpaid principal balance each month. The
~ rate of interest on the interest added to principal will be the
s rate reqt~irPCi hy CPrLinn ?_~Q,.g.
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g (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 unpsid
~ principal balance in full on the maturity date at my current rate
~ of interest in substantially equal payments. If so, the Note
~ noider wiii subtract tne difference from the unpaid balance of my
~ loan each month until the next Interest Change Date as if I had
~ made a pertial prepayment under Section 8[of the Note].
~ (C) Limit on My Unpaid Principal Balance; required Full
~ Payment Amount
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~ My unpaid principal balance can never exceed a maximum
amount equal to one hundred twenty-five percent (1250) of the
principal amount I originally borrowed. If my paying the amount
- of my monthly payment calculated under Section S above after any
Interest Change Date would cause my unpaid principal balance to
exceed that maximum amount at any time, I will instead pay the
Full Payment Amount as my monthly payment until the next Pa}ment
Change Date.
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