HomeMy WebLinkAbout0926 G. BORROVVER'S OP'tlON TO CONVERT
Borrower may, at Borrower's option, modify the repayment terms of the indebtedness secured hereby on the first Change
Date. At that time, BorroN~er may convert the Adjustable Rate Loan evidenced by the Note into a fixed interest rate loan to {
be fully repaid in equal monthly payments of principal and interest over the remaining term of the loan.
H. LENDER'S NOTICF TO SORROV4'ER
Lender's "Notice oC Changes" to Borrower pursuant to paragraph 4(E) of the Note given prior to the first Change Date
shall also contain the following a~~;tiora: information ~rtait?ing to Borrcwer'c nntinn to convert:
(i) the fixed interest rate payable by Burrower if Borrower converts into a fixed interest rate loan;
(ii) the amount of BorroH~er's new monthiy payment at the fixed rate of interest; and
(iii) a date, not more rhan ! 5~1ayc from the date the notice i~ Ki~ en, by~ H hich Borrow~er must exee:ute and deliver to Lender
a document in the form required by Lender e~~idencing the modification of the Nore to provide a fixed interest rate.
;.~CI~ION OF FIXED INTERE.ST R.4TE AND MONTHLY PAl'Mi~:NT ADJUSTMENT
Lender shall set the f~xed rate of interc~st payable by Borrow~er at a rate identical to the sum of the Federal Nome Loan Mort-
gage Corporation's Required Net Yield for 60-da}• deli~~ery of 30 year, fixed rate mortgages available 45 days prior to the
first Change Date plus three-eighths of one percent (.375°'0). If no such Required Net Yield is available, L~r;w.: s:::. ~.se: i
mine the fixed interest rate b~~ using a comparable figure. The new ~xed interest rate will be::ome effective on the frst I
Change Date if BorroNer chooses to ronvert to a fired interest rate. ~
Borrower's monthly pay~ments at the ne«~ fi~ced inrerest rate H~ill begin as of the first monthly payment after the first Change
Date. The monthly payment Hili be the amount that is necessary~ to repay in full the principal Borrower is expected to owe
on the Change Date in substantiall}~ equal payments b}~ the maturity date at the fixed interest rate.
J. BORROWER'S ELECTIUN Nu l 7 u ~u~ v r.K i
Borrower must execute and deli~~er to Lender the document e~ idencing the modification of the Note Hithin the period set in ~
' Lender's notice as provided in paragraph H abo~~e. If Borro~er does not do this within the specified date, Borrower can no j
longer exercise the option to com~ert. ln this case, the terms of Borrower's Note ~~ill continue in effect Hithout any change. ~
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K. EFFECTIVFVESS OF PROVISIO\S ~
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Upon Borrow~er's deliver~~ of the executed moditication to the Note, paragraph .A aba~e shall cease to be effecti~~e. ~
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! I~ W~r~t.,~ ~ti F~r:Rt.ot. Borrower has executed this Convertible ARM Rider. ~
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