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HomeMy WebLinkAbout0937 6. BORROWER'S RIGHT TO GIMIT MONTHLY PAYMENT ~ (A) Cakulatioa of Limited Fayment Unless Sections 6(C) and 6(D) below will not permit me tu do so, I may choose to limit the amount of my new monthly payment followi~g the third and each later Interest Change Date to the amount 1 have been paying multiplied by the number 1.075. This amount is called the "Limited Payment." If I choose a Limited Payment as my moat6ly payment, 1 must give the Note Notder notke that I am doing so at least IS days before roy Hrst ncw monthly payment is due. (B) Additiaos to My Unpaid Principal My monthly payment could be less than the amount of the interest portion of the monthly payr?~nt that would be suffi- cient to repay the unpaid principal 1 owe at the monthly payment date in full on the maturity date at my current interest rate in substantially equal payments. If so, each month that the amount of my monthly payment is less than the interest por- tion, the Note Holder will subtract the amount of my monthly payment from the amount of the interest portion and wiU add the difference to my unpaid principal. The Note Holder will also add interest on the amount of this difference to my unpaid principal each month. The interest rate on the interest added to principal will be the rate required by Section 2 or 4(A) above. tC) Llmit on Unpaid Principal; Iacreased Monthly Payment My unpaid principal can never exceed a ma~cimum amount equal to one hundred twenty-five percent (1255G) of the principal amount I originally borrowed. My unpaid principal could exceed that maximum amount if I pay a Limited Payment. If so, on the date that my paying a Limited Payment w•ould cause me to exceed t~ti~t !~~nit, I will instead begin paying a new monthly payment until the next Interest Change Date. The new monthly payment will be in an amount which would be suffi- cient to repay my the~ unpaid principal balance in full on the maturity date at my current interest rate in substantially equal payments. (D) Finai Monthly Payments Beginning with the first monthly payment after the final Change Date, I will pay the Full Payment as my montiily payment. 7. NOTICE OF CHANGES The Note Holder will mail or deliver to me a notice of any changes in my interest rate and in the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 17 of the Security Instrument is amended to read as follows: Transfer of the Property or a Benefcial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transf:~rred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent. Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. Lender also shall not exercise this o~:ion if: (a) Borrower causes to be submitted to Lender inforn~ation required by Lender to evaluate the intended transferee as if a new loan were being made to the ttansferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the ioan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable ro Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obliga!ed under the Note and this Security Inswment unless i.ender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. ' The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Bor- rower must pay all ~;:s*:s secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration C of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on ~ ~ Borrower. , ~a I BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Graduated Payment ~ Rider. 1 ~ ~ ~ ~ . ~ ~ ~ , ~ ~ (Seal) HAROLD• C. MORSCH AUSER ~r~e~ ANNA R. MORSCH tJSER 8°"°'"e` - ( Seal ) ( Seal ) so.~~ -ea~~ ISiRn Original Onhy € . ~ S E - ~ ~ i I ao~ PacE ~ ; _ ~ ~ - - - - _ - ~