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Home My WebLink About1129 :1~xumc:nts and mccl sny aJditiunal rryuucmcnts ncc~asary tur C'~~mcr~iun. ( K i Calculatiua uf H lxed Itutr My new fixed inlerest rate will tx detc;rminc:d ;ts of the close +~f lhc Fcderal Natii»ial Murlg:~g~ As~uciatiun's la~t • business day of the month immediatrly preceding the month in which I return my Notice of C'un~~rsion and cunversion Cee and will be eyuat to FNMA's 30-year A/A (~0-day delivc;ry requircd nei y~etd [or fixed raic muri6abrs as quoted with no commitment fee, plus 0.625% perccntage points, rounded to the ncartst one-eighth uf one ~rcentage point (0.125°l0). My new fixcd interest rate will not exceed a maximum r:~te of 18.W~7o. I( the FNMA rrquired net yielJ cannot bc; determined becawe the app6cable commitments are nut available, the Nu[e Nold~r will determine my interest rate by using cumparabic information. 1(') ERrctive Date of Fixed Interest Rate If I satisfy all of the; conditions fur exercuing the Conversiun Optiun described in Sectiun 5(A) abu~~c, the n~~~~ f~xed interest rate wifl go in[o effect on thc first day of t6e month following the Note Holder's receipt uf the Noticc of Canversion and con~•crsion [ee. This date is called the Con~ersion Date. lf I do not satislv all of thtse cc~nditiuns, any attempt at excrcise of the Conversion Option will be null and void. lf I have satisfied all of the conditions tu a~nvert, t cannot c:incel the Conversion after the Note Holder receives the conversion fee and Ihe Natice uf Conversion. After the Note Holder receives my Notice of Conversion and the conversion fee by the date it is due, Conversion becomes final. Any attempt by me to cancel the Cunversion prior to the time Conversion tx~comes f nal w~ll cause the Conversion Option to expire and my loan will remain an adjustable rate loan unti! ma[urity. (U) New Payment A~uount and ERectlve Date If I choose to exercue the Conversion Option, the Note Holder will determine the amount of the monthly payment that would be sufficie.nt to repay the unpaid principal I am expected to ow~ on the Conversion D:?te in full on the maturity date at my new fixed interest rate in substantially equal payments. The result of this calcul;stiun will be the new amount of my monthly payment. Beginning with my first monthly payment after the Cum~ersiun Datc, I w~ll pay the new amount as my monthly payment until the maturity date. IE) Procedure For Exercising Conversion Option The Conversion Perioci is defined as the pc;riod beginning on ihe second Change Date and ending on the tenth Changc Date. I may not begin the conversion process earlier [han the month immediately precedir.g the second Change Date (llth month). 1 may not begin the com~ersion pracess later than the month immediately preceding the final Changc Date during the Conversion Period (59th month). In order to determene if 1 want to exercise my Conversion Option in a particular month during the Conversion Period, I may ohtain rate information from [he opening of business on the first business day of a month through the close of business on the fourth business day of that month by telephoning the Customer Service Dcpartment at 1- ~0-354-3233, or at such other number(s) as I am advised. If I decide to exercise my option, I must complete thc Notice of Conversion (based upon information received during the telephone call w~th the Customer Ser~ice Department) provided to me at loan closing and return it to the Note Holder with the conversion fee. The Noticc ! of Conversion and the comersion fee MUST be received by the Note H~lder no later than the SEVENTH (71h) business day of the month in which I exercise the Conversion Option. If I do not exercise the Conversion Option during the Converseon Period, it automatia?Ily cxpires and is no longer available. C. TRAriSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower exercises the Conversion Option under the conditions stated in Section B of this Adjustable Rate Rider, , l'niform Covenant 17 of the Security Instrument is amended to read as follows: 'Transfer of the Property or a Beneficial Ioterest in Borrower. If all or any part of the Property or any interest in it is sald ~~r transferred (c+r if a beneficial interest in Borrower is sold or transferred and Borrower is not a na[ural person) without Lender's ` E~ric~r written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. Huwever, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security ~ Instrument. Lender also shall not exercise this option if: (a) Borrower causes to be submi[ted to Lender information reyuired ~ Lender to evaluate [he intended Uansferee as if a new loan were being made to the transferee; and (b) Lender rcasonably i :1~termines that Lender's security will not be impaired by the loan assump[ion and that the risk oF a breach of any covenant or ! ~greement in this Security Instrument is acceptable to Lender. ~ "Co the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to ihc loan f ~~sumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that ~~hligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower ~ti~~ll continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. ~ If Le;nder exercises the option to requ'ue immediate payment in full, Lender shall give Borrower no[ice of acceleration. Thc ~ nc~tice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must E~a}~ all sums secured by this Secwity Instrument. If Borrower faiLs to pay these sums prior to the expiration of [his period, Lender ' ma~ invoke any remedies permitted by t6is Security Instrument without further notice or demand on Borrower." € 2. If Borrower exercises the Conversion Option under the conditiQns stated in Section B of this Adjustable Rate Rider, the ~ ,~m~ndment to Uniform Covenant 17 of the Security instrument described in Sec[ion C1. above shall [hen cease to be in effect, t ancl the pro~isions of Uniform Covenant 17 of the Security InsUument shall instead be in effect, as follows: ~ "Transter ot the Property or a Beneficial Interest in Borrower. If al! or any part of thc Propcrty or any interest in it is s~~ld ` ~~r transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural pc;rson) without I,cnder's ~ ior written consent, Lender may, a[ i[s option, require immediate payment in full of all sums secured by this Security Instrument. ~ N~~wever, this option shall not be exercised by Lc;nder if exercise is prohibited by federal law as of che date of this Security ~ InStrument. ~ If Lender exercises [his op[ion, Lender shall give Borrower notice of accelera[ion. The no[ice shall provide a period of not ~ I~~s than 30 days from the date the notice is delivered or mailed wi[hia which Borrower must pay all sums secured by this Security t Instrument. If Borrower fails to pay these sums priar to the expiration of this period, L.ender may invoke any remedies permitted h~~ this Security Instrumen[ without further notice or demand on Borrower." f3Y SI(iNtNCi BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. . -~C'~ Yt, c~~, c S-~ , (Seal) ~ E3c~ o er FRANK MONTANEZ, SR ~ ~ ' (Seal) Y o oweR ANN . M ANEZ ~ ~ (Seal) or~ (Sign Original Only) F~1-1039 Six tilonth Convertibie AR1i Note Rider (10/88~ ~~nR ~ ~~129 B~uK : ~ - .,~3~iiaa~-; ~~~?~:s~~`'~,Y,~~,~~ `~~`i~"'~~ ~