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HomeMy WebLinkAbout0933 i . G. 80RROWER'S OP'TION TO C`ONVERT Aonower may, at Borrower's option. modfy the repaymrnt terms of the indebtodness secured haeby on the first C'hange Date. Ac that dme, Borrower may rnnvM tht Adjustabk Rate Loan evidrnced by the Nate into a~ucod interest rate {oan to be fully rcpaid in oqual monthly paymrnts of ~ixipal and interest over the remaining tenn of the loan. N. LENDER'S NOTICE TO BO:tifOWFR Lcnde:'s "Notia of Char.g~" to Borrower pursuant to paragraph 4(E) of the Note given prior to the first Change Date shaU also contain the following a~ditional information pertaining to Bocrower's option to convert: (i) the tuced interest rate payabk by Borrower if Borrower rnnverts into a fixed intuest rate loan; (ii) thc amount af Borrower's new monthly payment at the fixed rate of interest; and (iii) a date, not mure than 1 S days from the datz che notice is given, by wh~... Borrower must execute and drtivu to L.cnder a document in the form required by Lender evidencing the modification of the Note to provide a fixed interest rate. 1. SELECTION OF FIXED INTERF.S'T RATE AND M~DNTHI.Y PAYMENT ADJUSTMENT Lender shall set the fixed rate of interest payable by Borrower at a rate identica! to the sum of the Federal Home Loan Mort- gage Corpora~ion's Required Net Yield for 60-day delivery of 30 year, fxed rate mortgages available 45 days prior to the first Change Date plus three-eighths of one percent (.375%). If no such Required Net Yield is available, Lender will deter- mine t;~e fixed interest rate by using a comparab[e figure. The new fixed inter~t rate will become effective on the first Change Date if Borr~wer chooses to convert to a fixed interest rate. !3onower's monthly payments at the new fixed interest rate will begin as of the first monthiy paym:.nt after the first Change Date. The monthly payment will be the amount that is necessary to repay in full the principa! Bonawer is expected to owe on the Change Date in substantially equal pa}+n~ents by the maturity date at the fixed interest rate. J. BORROWER'S ELECTION NQiit i0 CONVERT Borrower must execute ar?d deliver to Lender the document evidencing the mod'eGca[ion of the Note within the period set in Lender's notice as proe-ided in paragraph H above. If Borrower dces not do this within th~e specii;ed date, Borrower can no tonger exercise the option to convert. In this case, the :erms of Borrowee's Note will continue in effect without any change. K. EFFEf.T[YE~iESS OF PROVlSIONS Upon Borrower's deli~~ery of the executed modit~cation to the Note, paragrap!~ 4 above shali cease to be effective. I i I1 Wi7~FSi WHEREOF, Borrower has executed this Converti RM Rider. k ~ ~ ~ _...($f.21) : . ; Frank Les .ie III -Borrower ~ !~~:c-~tlJ~- ~.....~~-~!t~t,.~-C i .......................................(Seal) ~ . . . ~Uebra C . LES11 E -k3orrower ~ ............................................:.................................................(SeaZ) - Borrower ~ (Sign O~igina! Only) ~ ~ ~ i ~ ~ F~6 ~ 2:42 ~ '~5 8 P ~ ~ ~ - ~ FILE~ r• ' _ RQGEF F ; _ - r 1 . ST. ~UC~E C~~~~y" ~ ~ 6 ~ ~ s9z~~o ~ ~ ~ ~ ~ ox ~ ~ aoac 456 rsc~ ~ ~ _ ~ _ _ - ~ _ _ -