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~ (e) I mus[ agree that the term of the Note be changed so that the new term
' ends on a date, which I may select, which is an anniversary date of,
but which is noL less than ten (10) nor more than thirty (30) years
after, the firat day of tfie month next succeeding [he date of the Note;
j(f) I must agree that the payments on the IVote, including both principal
' and interest payments, be adjusted so that the Note will be fully paid
at the end of the new term of the Note;
;
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~(g) I must furnish the Note Holder vith 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"; documentation [o 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 laan.
~(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 ProperCy, or any interest
in it, given as security for the Note ia 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 as of [he date of
conversion, at its sole option and without any other restrictions,
require immediate payment of all sums due under the Note. If Lender
exercises this option, Lender shall give Borrower notice of a.^.celeration.
The notice shall provide a period of not less than thirty (30) days from
the date the notice is delivered or mailed vithin which Borrower must
pay all 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 Instrument without furthes
notice or demand on Borrower.
2. Calculation of Fixed Rate.
My new, fixed interest rate will be equal to the Federal Natfonal 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 (0.62570),
4 rounded to the nearest one-eighth of one percentage point (0.12570). If this
! required net yield cannot be determined because the applicable commitments are
~ 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
~ 14 . 500'~ •
` 3. Determination of New Payment Amount.
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~ If I choose to exercise the Conversion Option, the Note Holder will determine
~ the anount 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 Eixed interest rate in substantially equal paymenta. The result
of this calculation will be the new amaunt of my monthly payment. Beginning vith
~ my first monthly payment after the Gonversion 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
~ contafned in this Fixed Rate Conversion Rider.
~
1022216
. •s+o ~r,~~ ~o At~
~ ( S e a l )
~ iLF{' - rrower
- ~ ' John Lukow
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~ (Seal)
~ orrower
~ Hanne Lukow
~ (Seal)
~ Borrower
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