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200211863 BALLOON NOTE ADDENDUM (CONDITIONAL RIGHT TO REFINANCE) THIS BALLOON NOTE ADDENDUM is made this .......25TH........ day of J QQTQKl3,? QQ2 .............................. and is incorporated into and shall be deemed to amend and supplement the Balloon Note made by the undersigned ( "Borrower ") in favor of .. BANK PEOQ.NIP.110, P Q.OPX ?R,.QQN.IPH.AN, NE QQN?. Q? 7Q ...................... ............................... .............................................................................................................. ............................... ................................................ ............................... ( "Lender ") and dated as of even date herewith (the "Note "). The interest rate stated on the Note is called the "Note Rate." The date of the Note is called the "Note Date. " I understand Lender may transfer the Note, the related Mortgage, Deed of Trust, or Security Deed (the "Security Instrument "), and this Addendum. Lender or anyone who takes the Note, Security Instrument, and this Addendum by transfer and who is entitled to receive payments under the Note is called the "Note Holder." ADDITIONAL COVENANTS. In addition to the covenants and agreements in the Security Instrument, Borrower and Lender further covenant and agree as follows (despite anything to the contrary contained in the Security Instrument or the Note): 1. CONDITIONAL RIGHT TO REFINANCE At the Maturity Date of the Note and Security Instrument (the "Maturity Date "), I will be able to obtain a new loan ( "New Loan ") with a new Maturity Date of 11:03:200Z .............. . . . .. . .... . ............ . and with an interest rate equal to the "New Note Rate" determined in accordance with Section 3 below if all the conditions provided in Section 2 and 5 below are met (the "Conditional Refinancing Option "). If those conditions are not met, I understand that the Note Holder is under no obligation to refinance or modify the Note, or to extend the Maturity Date, and that I will have to repay the Note from my own resources or find a lender willing to lend me the money to repay the Note. 2. CONDITIONS TO OPTION If I want to exercise the Conditional Refinancing Option at maturity, certain conditions must be met as of the Maturity Date. These conditions are: (a) I must still be the owner of the Property subject to the Security Instrument (the "Property "); (b) I must be current in my monthly payments and cannot have been more than 30 days late on any of the 12 scheduled monthly payments immediately preceding the Maturity Date; (c) the New Note Rate cannot be more than five percentage points above the Note Rate; and (d) I must make a written request to the Note Holder as provided in Section 5 below. 3. CALCULATING THE NEW NOTE RATE The New Note Rate will be a fixed rate of interest equal to Fannie Mae's required net yield for 30 -year fixed rate mortgages subject to a 60 -day mandatory delivery commitment, plus one -half of one percentage point (0.5 %), rounded to the nearest one - eighth of one percentage point (0.125 %) (the "New Note Rate "). The required net yield shall be the applicable net yield in effect on the date and time of day that the Note Holder receives notice of my election to exercise the Conditional Refinancing Option. If this required net yield is not available, the Note Holder will determine the New Note Pate by using comparable,, information., 4. CALCULATING THE NEW PAYMENT AMOUNT Provided the New Note Rate as calculated in Section 3 above is not greater than five percentage points above the Note Rate and all other conditions required in Section 2 above are satisfied, the Note Holder will determine the amount of the monthly payment that will be sufficient to repay in full (a) the unpaid principal, plus (b) accrued but unpaid interest, plus (c) all other sums I will owe under the Note and Security Instrument on the Maturity Date (assuming my monthly payments then are current, as required under Section 2 above), over the term of the New Note at the New Note Rate in equal monthly payments. The result of this calculation will be the amount of my new principal and interest payment every month until the New Note is fully paid. Form 3266 PJOAO MULTISTATE BALLOON NOTE ADDENDUM — Single Family— Fannie Mae Uniform Instrument Bankers Systems, Inc., St. Cloud, MN Form BNA -3266 9/13/2001 (page 1 of 2 pages)