HomeMy WebLinkAbout0929 (i) by tl~e Gonversion Aate, I must pay all required recording fees,
intangible taxes, documentary stamps or other third party fees and
charges to effect the conversion.
2. Calculation of Fixed Rate:
My new, fixed interest rate will be equal to the Federal Home Loan
Mortgage Corporations ("Freddie Mac" or "FHLMC") required net yield for 30-year,
fixed rate mortgages covered by 30-day mandatory delivery commitments in effect
as of the Conversion Date, plus three-eights of one percent (.375Z). If this
required net yield is not available, ttie Note Nolder will determine my interest
rate by using a comparable figure.
3. Determination of new Payment Amount:
If I choose to exercise the Conversion OpCion, the Note Holder will
determine the amount of the monthly payment that would be sufficient to
repay the unpaid principal I am expected to owe on the Conversion Date in full on
the maturity date at my new fixed interest rate in substantially equal payments.
The result of this calculation will be the new amount of my monthly payment.
Beginning with my first monthly payment after the Conversion Date, I will pay
the new amount as my monthly payment until the maturity date.
B. TRANSFER OF T1iE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
If Borrower exercises the Conversion Option under the Note as stated in
Section A of this Addendum to Ad~ustable Rate Rider, the amendment to Uniform
Covenant 17 of the Security Instrument contained in the Rider shall cease to be
in effect, and the provisions of Uniform Covenant 17 of the Security Instrument
shall instead be in effect, as follows:
Transfer of the Property or a Beneficial Interest in Borrower. If all or
any part of the Property ar any interest in it is soZd or transferred (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 tt~is Security Instrument.
If Lender exercises the option to require immediate payment in full, ~
j 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 I
mailed within which Borrower must pay all sums secured by this Security Instrument. ~
If Borrower fails to pay tt~ese sums prior to the expiration of this period, Lender !
may invoke any remedies permitted by this Security Instrument without further
notice or demand on Borrower.
C. FAILURE TO CHOOSE CO~VERSION
i'
If I do not, at least 30 days before the last possible Conversion Date
specified iii Section A1 above, give the Lender written notice that 1 choose to _
convert my adjustable rate interest payments to fixed rate interest payments and
do the other things that I must do under Section A above, within the applicable
times specified in such Section, I will no longer have the right to choose a
conversion from the adjustable rate to a fixed interest rate.
By signing below, Borrower accepts and agrees to the terms and covenants
contained in this Addendum to Adjustable Rate Rider.
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~'7,~~~~ ' Bor ower LAWRENCE R. GARF.ETT
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i6 A10 :23 /J
, (SEAL)
FI!_ ~ o-Borrower
SH~RREL A. GARRETT
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