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200705271 (B) The Index Beginning wit h the first Change Date, my interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. 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 whic h is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calwlmion of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding THREE AND 500/1000 percentage points ( 3.500 %) to the Current Index. The Note Holder wi II then round the result of this addit ion to the nearest one-eight h of one percentage point (0.125%). Subject to the limit s stated in Section 4(0) 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 mont hly payment. (D) Umits on Interest Rme Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.375 % or less than 7.375 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one percentage point (1.0%) from the rate of interest I have been paying for the preceding 12 months. My interest rate will ne ver be greater than 15.375 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I wi II pay the amount of my new mont hly payment beginning on the first mont hly payment date after the Change Date until the amount of my mont hly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will a nswe r any question I may have regarding t he not ice. .-821 R (0402).01 @ Page 2 of 4 Initials: J/.AA A J 'f!-Yfv \ Form 3108 1/01 0110269295