HomeMy WebLinkAbout0920 G. BORROWER'S OP"I'!ON 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, Borro~~er may convert the Adjustable Rate Loan evidencea by the Note into a tixed interest rate loan to
be fully repaid in equal monthly payments of principal and interest over the remaining term of the loan.
H. I.EhDER'S NOTICE TO BURR~OWER
Lender's "Notice .~f C: hanges" to Borrower pursuant to paragraph 4(E) of the Note given prior to the t'irst Change Date
~~all also contain the following additional information pertaining to Borrower's option to convert:
(i) the fixed interest rate payable by Borrower if Borrower com-erts inro a tixed 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 IS days from the date the notice is gi~en, by~ w~hich Borrower must executeand deliver to Lender
a document in the form required by Lender evidencing the modification of the Note to provide a fixed interest rate.
L SELEC'TION OF FIXED INTERHST IZATE AND MOtiTHIY PAti'MENT ADJUSTMFhT
Lender shall set the tixed rate of interest pa~~able b}~ Borrower at a rate identiral to the sum of the Federal Home Loan Mort-
gage Corporation's Required Net Yield for 60-day deli.~ery of 30 y~ear, fixed rate mortgages available 45 days prior to the
hrst Change Date plus three-eighths of one percent (.~75°'0). If no such Required Net Yield is available, Lender will deter-
mine the t~xed interest rate b~~ using a comparable figure. The ne~~• tixed interest rate H~ill become effective on the tirst
Change Date if Borro~~er rhooses to convert to a t?xed interest rate.
Borrow~er's monthl~~ pa}~ments at the ne~v fixed interest rate «~ill begin as of the first monthty payment after the first Change
~ Date. The monthly payment will b~: the amount that is nec;essary to repay in full the principal Borrow~er is expected to owe
on the Change Date in substantially equai payments b~~ the maturity~ date at the fixed interest rate.
J. BORROWER'S ELEC'I'IOti vOT TO COtiVF.RT
Borrower must execute and deliver to Lender the document e~ idencing the modification of the Note µ~ithin the period set in ~
Lender's notice as provided in paragraph H abo~e. If Borrower does not do this within the specified date, Borrower can no
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~ fonger exercise the option to con~~ert. In this case, the terms af Borro~~•er's Note «~ilt contir.ue in effect ~cithout any change. ~
~ ti. EFFECTIVFtiE;.SS OE PROVISIO`ti
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~ Upon Borro~~er's deli~~er~~ of the executed moditication t~ the Note, parag;aph A abo~e shalf cease to be effective.
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` I~ V1'iT~r.» ~~~t;tHtuF. Burrower has e~ecuted this Con~ertibte ARM Rider.
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