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200505494 LOW DOWN PAYMENT FEE MORTGAGE RIDER TO SECURITY INSTRUMENT THIS LOW DOWN PAYMENT FEE MORTGAGE RIDER TO SECURITY 1NS'rRLJMFNT is made this 17th day of June, 2005, and is incorporated into and shall 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 Note to PHH Mortgage Corporation ( "Lender ") covering the Property described in the Security Instrument and located at: ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. LOW DOWN PAYMENT FEE The Note and the Low Down Payment Addendum to Note provide for the monthly payment of a Low Down Payment Fee as follows: 1. LOW DOWN PAYMENT FEES Borrower hereby agrees to pay Low Down Payment Fees ( "LDP Fees ") totaling U.S. $38.74 each month of which (i) $38.74 is in lieu of paying premiums for private mortgage insurance, which Lender would otherwise require for a loan with loan to value ratio in excess of 80 %, and (ii) $ 0.00 is to compensate Note Holder for additional activities needed to service a mortgage with the Low Down Payment Fee Option. Borrower will pay the LDP Fees until the earlier of (a) the First Cancellation Date (as defined in I below) or the Second Cancellation Date (as defined in 1.13 below), provided that the conditions described in I.A. or 1.13. below, as applicable, are satisfied; or (b) the Termination Date (as defined in 1.0 below), provided that Borrower's monthly payments are current at that time. The LDP Fees will be added to the amount of Borrower's monthly payment which Borrower has agreed to pay pursuant to Section 3(B) of the Note. Therefore, until such time as the LDP Fees is terminated. Borrower's required total monthly payment will be U,S. $387.38. If the Note is an adjustable rate note, Borrower understands that the foregoing total monthly payment is the amount of the initial total monthly payment, which may change pursuant to Sections 3 and 4 of the Note. A. First Cancellation Date The "First Cancellation Date" is defined as the date that is the first monthly payment due after Note Holder has verified that Borrower has satisfied all of the following requirements: (1) Borrower must request cancellation in writing for the Note Holder; (2) the mortgage balance: (a) is first scheduled to reach 80% of the original property value; or (b) actually reaches 80% of the original property value; (3) Borrower is current on payments and has demonstrated a Good Payment History (as described below); and (4) the then - current value of the property is at least equal to the original property value. (The then- current property value will be based on a new appraisal or broker's price obtained by Note Holder and paid for by Borrower.) 0679017 (041405),1 C i � Ir,..