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(e) I mus[ agree that the term of the Note be changed eo that the new term
ends on a date, which I may select, which is an anniversary date of,
but which is not less than ten (10) nor more than [hirty (30) years
after, the firs[ day of the month next succeeding [he date of the Note;
(f) I must agree that the paymente on [he Note, including both principal
' and interest payments, be adjusted so that the No[e will be fully paid
at the end of the new term o Y Ehe Note;
(g) I must furnish the Note Holder with such documents and information as
will make my loan saleable to either the Federal National Mortgage
Association, "FNMA", or the Federal Home Loan Mortgage Corporation,
"FHLMC"; documentatfon to include a certification from an appraiser,
selected by the Note Holder, to confirm that there has been no decline
in the property value from the date I made the loan.
(h) I must sign and give to the Note Holder any documents the Note Holder
requires to effect the conversion; and
(i) I must, based on documents in my file with the Note Holder, qualify for ~
the interest rate and term being offered under this Addendum using
FNMA/FHLMC Guidelines for fixed rate mortgages.
(j) I must agree that if all or any part of the Property, or any interest
in it, given as security for the Note is sold 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 then
Lender may, unless prohibited by Federal Law ae of the date of
conversion, at its sole option and without any other restrictions,
require immediate payment of all $ums due under the Note. If Lender '
exercises this option, Lender shall give Borrower notice of acceleration.
The notice shall provide a period of not less than thirty (30) days from
the date the notice is delivered or mailed within which Borrower must '
pay all sums secured by this Security Instrument. If Borrower fails
to pay these sums prior to the ~xpiration of this periad, Lender may
invoke any remedies permitted by the Security Instrument without further
notice or demand on Borrower.
2. Calculation of Fixed Rate.
My new, fixed interest rate will be equal to the Federal National Mortgage
Association's required net yield as of the time of conversion for fixed rate
mortgage loans (having a term equal to the New Term) covered by applicable 60-day
mandatory delivery commitments, plus five-eighths of one percentage point (0.6257a),
rounded to the nearest one-eighth of one percentage point (0.1257.). If this
~ required net yield cannot be determined because the applicable commitments are
j not available, the Note Holder will determine my interest rate by using comparable
~ information. However, in no event will the converted rate be greater than
l 3 . ~~0 9',.
!
~ 3. Determination of New Payment Amo4nt.
~
~ If I choose to exercise the Conversion Option, 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 new maturity
date at my new fixed interest rate in substantially equal payments. The result
~ of this calculation will be the nev 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.
~
~ BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants
~ contained in this Fixed Rate Conversion Rider.
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" Seal)
` BorrQwer
= W'lliam .J. yeagher
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~ ~ ~Seal)
Borrower
~ Gluri:~ :N. Keag}ier ,
~ ~ (Seal)
k Borrower
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