HomeMy WebLinkAbout0934 G. BORROWER'S OPT10N TO CONVERT
Borrower may, at Borrower's option, modify the repa}Tnent terms of the indebtedness securetl hereby on the tirst Change
Date. At that time, BorroH~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 o~-er the remaining term of the loan.
H. LENDER'S NOTICE TO BORROWER
Lender's "Notice of Changes" to Borrower pursuant to paragraph 4(E) of the Note given prior to the first Change Date
shall also contain the following additional information pertaining to Borrow~er's option to convert:
(i) the fixed interest rate payable by Borrower if Borrower converts into a tixed interest rate loan;
(ii) the amount of Borrow~er's new monthly payment at the fixed rate of interest; and
(iii) a date, not more than I S days from the date the notice is given, by which Borrower must execute and deliver to l,ender
a do:.ument in the for:n rcquired by L.ender evidencing th~ madifration of the Nate to provide a iixed interest rate.
L SELEC'I'ION OF FIXEU INTEREST RATF AtiD MONTNLY PAl'MENT A[UUSTMENT
Lender shall set the fixed rate ot' interest payabte b}~ Borrower at a rate identical to [he sum of the Federa) Home Loan Mort-
gage Corporation's Required Net l'ield for 60-day~ delivery of 30 ~•ear, fixed rate mortgages available 45 days prior ro the
first Change Date plus three-eighths of one percent (.375°'0). If no such Required Net Yield is available, Lender will deter-
mine the fixed interest rate by using a comparable figure. T'he new fixed interest rate will become effective on the first
Change Date if Borro~?er chooses to rom~ert ro a~xed interest rate.
Borrower's monthly payments at the new fixed interest rate will begin as of the first monthly payment after the f rst Chanae
Date. The mcnthly payment will be the amount that is n~essar}• to repay~ in full the principal Borrower is expected to owe
on the Change Qate in substantialt}• equal pa~•rtients b~• the maturity date at the fixed interest rate.
J. BORROWER'S ELECTION NOT TO CONVE RT
Borrow~er must execute and deliver ro Lender the dexument e~~idencing the modification of the Note ~+•ithin the period set in
Lender's notice as pro~~ided in paragraph H abo~e. If Borro~~~er does not do this ~~ithin the specified date, Borrower can no
longer exercise the ~ption ro com~ert. In this case, the terms of Borrower's Note will continue in effert without any change.
i K. EFFECTtVEtiF:SS OF PRO~'ISIOtiS
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~ Upon Borrower's deli~~ery of the executed modification to the Note, paragraph A abo~~e sh<<Il,cease to be effec[ive.
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