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(e) I mus[ agree that the term of the Note be changed so that the new ter~ ;
ends on a date, vhich I may select, which is an annivereary date of, ~
but which is not less than ten (10) ror more then thirty (30) years ~
af[er, the first day of the month next succeeding the date of the Note; f~
~ Y
(f) I must agree that the payments on the Note, including both principal
and interest payments, be adjusted so that the Note will be fully paid a
at the end of the ~ew term o Y~he Note; ;
(g) I must furnish the Note Holder With auch documente and informa[ion as
will make my loan saleable to either the Federal National Mortgsge ,
Association, "FNMA", or the Federal Home Loan Mortgage Corporation,
"FHLMC"; documen[ation to include e certification from an appraiaer,
selected by the Note Holder, to confirm that there has been no decline
in the property value from the date I mede the loan.
(h) I must sign and give to the Note Holder any documents the Note Holder
requires to effect the conversion; and
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(i) I must, based on documents in my file with the Note Holder, qualify for
the interest ra[e and term being offered nnder this Addendum using
FNMA/FHLMC Guidelines for fixed rate mortgages. . 1~
(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 n
a beneficial interest in Borrower ia sold or transferred and Borrower i~
is not a natural person) without Lender's prior wrftten consent then
.
Lender may, unless prohibited by Federal Law as of the date of
conversion, at its sole option and without any other restrfctions,
require immediate payment of a12 ~ume due under the Note. If Lender
exercises this optioa, 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 a11 sums secured by this Security Instrument. If Borrower fails
to pay these sums prior to the expiration of this period, Lender may
invoke any remedies permitted by the Security Inetrument without further
notice or demand on Borrower.
2. Calculation of Fixed Rate.
My new, fixed interest rate will be eqval to the Federal National Mortgage
Association's required net yield as of the time of conversion for fixed rate
mortgage loana (having a term equal to the New Term) covered by applicable 60-day
mandatory delivery r_ommi.tments, pl.+zs five-eighths of one percentage point (0.6257e),
rounded to the nearest one-eighth of one percentage point (0.1259.). If this t
required net yield cannot be determined because the app2icable commitments are ?
not available, the Note Holder will determine my interest rate by using camparable
information. However, fn no event will the converted rate be greater than
14 . 500 90.
3. Determination of New Paynnent Amount,
~
; If I choose to exercise the C~nvarsion 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 new amount of my monthly payment. Beginning with
~ my first month2y 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 terma and covenants
contained in this Fixed Rate Conversion Rider.
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OOUG~_~S DiXOt~ ~ (seal)
S~. l'JCi~ (:f1!!NT Y Borrower
Bruce A. ThoAas
(Seal)
Borro
1Kary Tho~as
(Seal)
Borrower
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