HomeMy WebLinkAbout0965 G. BURROWER'S OP"TION TO CONVERT
Borrower may, at Borrower's option, modify the repay~nent terms of the indebtodness sccured hereby on the first Change
Date. At that time, Borrower may convert the Adjustable Rate Loan evidenced by the Note into a fixed interest rate loan to
be fully repaid in equal monthiy payments of principal and interest over the remaining term of the loan. _
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!i. 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 penaining to Borrower's option to convert:
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(i) the fixed interest rate payable by Borrower if Borrower converts into a fixed interest rate loan;
(ii) the amount of Borrower's new manthly payment at the fixeci rate of interest; and
(iii) a date, not more than 15 days from the date the notice is given, by which Borrower must execute and deliver to Lender
a document in the form required by l.ender evidencing the moditication of the Note to provide a fixed interest rate.
1. SELECTION OF FIXED INTERFST RATE AND MONTHLY PAYMENT ~DJUSTMENT
Lender shall set the fixed rate of interest payable by Borr~wer at a rate identical to the sum of the Federal Home Loan Mort-
gage Corporation's Required Net Yield for 60-day delivery of 30 year, fixed rate mortgages available 45 days prior to the
first Change Date plus three-eighths of one percent (.375°Io). If no such Required Net Yield is available, Lender wiU deter-
mine the fixed interest rate by using a comparable figure. The new~ fixed interest rate will become effective on the first
Change Date if Borrower chooses to convert to a tixed interest rate.
Borrower's monthly payments at the new fixed interest rate will begin as of the first monthly payment after the first Change
Date. The monthly payment will be the amount that is necessary ro repay in full the principal Borrow•er is expected to owe
on the Change Date in substantially equal pa}•ments by the maturity date at the fixed interest rate.
J. BORROWER'S ELECI'ION NOT TO CONYE RT
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Borrower must execute and deliver to Lender the document evidencing th° mo~ification of the Note within the period set in
Lender's notice as provideu in paragraph H above. If Borrower does not do this within the specified date, Borrower can no
longer exercise the option to convert. In this case, the terms of Borrower's Note will continue in effect without any change.
K. EFFECT1VE~iFSS OF PROVISIOtiS
Upon Borrower's delivery of the executed modification to the Note, paragraph A abo~~e shall cease to be effective.
I~ W~r~t-tis Wt+r:Rf:oF. Borrower has executed this Convertible ARM Rider.
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