HomeMy WebLinkAbout0977 G. BORROWF.R'S OP'I'ION TO CONVERT
t3orrower may, at Borrow~er's option~ moclify the repayment terms of the indebtedness se~;ured hereby on the first Change
Date. At that time. BorroH•er may com~ert the Adjustable Rate Loan evidenced by the Note into a fized interest rate loan to
tx full~~ repaid in equal monthly payments ot prir?~~~;a: interest over the remaining term of the loan.
H. LF.NDER'S NOTICE TO BORRON'k.R
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 follow~ing addi~ional information pertaining ro Borrower's option to com~ert:
(i) the tixed interest rate payable by Borro~~~er if Borro~~~er ronverts into a fixed interest rate loan;
(ii) the amount of Borro~~er's new~ monthly payment at the fi~ed rate of interest; and
(iii) a date, not more than I S days fram the date the naure i. gi~~en, b~~ ~chirh Borrov+er must execute and deliver to Lender
a document in the form requireci by Lender evidenring thc muditiration of the Note to pro~~ide a hxed inter~~st rate.
1. SEI.ECTIOti OF FIXt:D 1`TEREST RA"TF. ANU MOtiTHII~' PA1'MF:\T ADJ1'STMF.tiT
Lender shall set th~ fi~ed rate of intereu pa~~ahle b~• &~rro~~er at a rate identiral to thc sum of the Federal Home Loan ~tort-
gage Corporation's Reyuired Net ti'ield lor 6U-da~~ ~ieli~~er~~ of 30 ~car, tixed rate mortgag~~ a~aitable 45 days prior to the
lirst Cnange Date ~lus thr~~-eighth~ ~1 cme per~ent (.z75°'o1. 1f no ~uch Requirrd Net Yield is a~ai~~~ i_ender H~ill deter-
mine the fixed interest rate b~~ u~ing a com~arahle ligure. The ne~~• tixed intrre~t rate ~+ill tntiome efie~ti~~c on the first
Change Date if &~rro~~er ~hoo~e~ to ~umert to a fi~ed imerett rate.
BorroHer's monthl~~ paymentl at the nc~~ fixed interest rate ~+~ill be~in a. af the first monthly pa~~mert at~ter the first Change
Date. The monthly~ payment ~~ill bc: the amount that iti necessar}~ ta ~epac in full the principal Borro~~er is expected to ow•e
on the Change Date in suostaniiaii~ eyual ~a~~mentti by the maturit~ date at the li~ed intere~t rate.
J. BORROWF.R'S ELECTIO\ \OT'TO ('01~'F:RT
{3orro~er must execute and deliver to Lender the ~i~xument e~ idenring the mociitiration of thc Note ~~ithin the period set in
Lender's notice as pro~ ided in parakra~h H abu~c. If Born~~~er doeti nut do thiti «~ithin the.~x~ihed date, Borro~~~er can no
longer exercise ihe option to comert. In thi~ rau, the term, of Borro«er'ti Note ~~ill continue in el fert ~~ithout am• chanee.
h. F.FFE(TI~'E1E.yti ()F~ PRO~"Itil()\ti
Upon Borro~+er'. ~1eli~er}~ uf thr e~erutr~i mn.iili~ati~~n c~~ the tio!e, ~aragranh A ahu~e .hall rca~e to be effecti~e.
'
1~ N'~i~t.. Nf+rKFUf. Borrower ha. e~~YU~ed i, omertible AR~1 K' ~ C'
~ :
~ ~ ~ ~.~`~~r '
. .
' . ` . . . . . . - ..~s..$..1'~e.~l)
J " : ~ _ r.,_ , o«nsv~
~ WEDGE DEVEI.OPMENT INC : r ~ ; ,
~ ••....,(~eal)_
' -
;~P~fGN{BI
~ .
~ ,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Seal )
-Borrower
~ lS~gn Ongmal Onty)
(
~ ?716603
~
~ 2~ p ~ :52 ~
~
k -
~ FILE~ . ~
~ ROGEn ~ , . .
ST
~
~
~
~
:
~
~ Cd ~7
au;xt ~ ( ~ PaGE ~
. . ~
_ .
: .
_ ~ k~. f x _ s:~ -
_ _ ~ ~ ~
~ -