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200408001 V1 WBCD LOAN # 500214825 MIN: 100052550021482517 FIXED /ADJUSTABLE RATE RIDER (LIBOR One -Year Index (As Published In The Wall Street Journal) -Rate Caps) THIS FIXED /ADJUSTABLE RATE RIDER is made this 12TH day of AUGUST, 2004, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument ") of the same date given by the undersigned ( "Borrower ") to secure Borrower's Fixed/ Adjustable Rate Note (the "Note ") to SIMPLICITY MORTGAGE CORP, A IOWACORPORATION ( "Lender ") of the same date and covering the property described in the Security Instrument and located at: 4110 Norseman Ave Grand Island, NE 68803. THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 5.500 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the 1sT day of SEPTEMBER, 2009, and the adjustable interest rate I will pay may change on that day every 12TH month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." (B) The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the average of interbank offered rates for one -year U.S. dollar - denominated deposits in the London market ( "LIBOR "), as published in The Wall Street Journal. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holderwill give me notice ofthis choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND SEVEN— EIGHTHS percentage point(s) ( 2.875% ) to the Current Index. The Note Holder will then round the result of this addition to the nearest one - eighth of one percentage point (0.125 %). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 7.500% or less than 3.500%. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than TWO percentage point(s) ( 2.000% ) from the rate MULTISTATE FIXED /ADJUSTABLE RATE RIDER -WSJ One -Year LIBOR - Single Family- Fannie Mae Uniform Innstrum nt Form 3187 6/01 Initials: / .I © 2001 -2002 Online Documents, Inc. Page 1 of 3 F3 RDU 0208 08 -11 -2004 13:19