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!. 200700623 BALLOON RIDER (CONDITIONAL MODIFICATION AND EXTENSION OF LOAN TERMS) THIS BALLOON RIDER is made this / tfJ day of :JttttU.AY~ ' :),007 , and is incorporated into and shall be deemed to amend and supplement the Mo gage, Deed of Trust, or Deed to Secure Debt (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure the Borrower's Note to HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF GRAND ISLAND (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 543 EAST 19TH ST. GRAND ISLAND. NEBRASKA 68801 (Property Address) The interest rate stated on the Note is called the "Note Rate." The date of the Note is called the "Note Date." I understand the Lender may transfer the Note, Security Instrument and this Rider. The Lender or anyone who takes the Note, the Security Instrument and this Rider 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 MODIFICATION AND EXTENSION OF LOAN TERMS At the maturity date of the Note and Security Instrument (the "Note Maturity Date"), I will be able to extend the Note Maturity Date to :p. Nfl n RV 1 20 1 ~e "Extended Maturity Date") and modify the Note Rate to the "Modified Note Rate" deiermmed in accordance with Section 3 below if all the conditions provided in Sections 2 and 5 below are me (the "Conditional Modification and Extension Option"). If those conditions are not met, I understand that the Note Holder is under no obligation to refinance the Note or to modify the Note, reset the Note Rate or extend the Note 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 Modification and Extension Option, certain conditions must be met as the Note Maturity Date. These conditions are (a) I must still be the owner and occupant 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 Note Maturity Date; (c) there are no liens, defects, or encumbrances against the Property, or other adverse matters affecting title to the Property (except for taxes and special assessments not yet due and payable) arising after the Security Instrument was recorded; (d) the Modified Note Rate cannot be more the 5 percentage points above the Note Rate; and (e) I must make a written request to the Note Holder as provided in Section 5 below. 3. CALCULATING THE MODIFIED NOTE RATE The Modified Note Rate will be a fixed rate of interest equal to the Federal Home Loan Mortgage Corporation's required net yield for 30-year fixed rate mortgages subject to a 60-day mandatory delivery commitment, plus one-half of one percent (0.5%), rounded to the nearest one-eighth of one percent (0.125%) (the "Modified Note Rate"). The required net yield shall be the applicable net yield in effect on the date and time of day that I notify the Note Holder of my election to exercise the Conditional Modification and Extension Option. If this required net yield is not available, the Note Holder will determine the Modified Note Rate by using comparable information. 4. CALCULATING THE NEW PAYMENT AMOUNT Provided the Modified Note Rate as calculated in Section 3 above is not greater than 5 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 Note Maturity Date (assuming my monthly payments then are current, as required under Section 2 above), over the remaining extended term at the Modified Note Rate in equal monthly payments. The result of Page 1 of2