|
<br />I
<br />
<br />R.d~'002A41
<br />"tlt). AdrJo.iN: of'"Mont~y ~aymnts
<br />My tronthly JEY!!E!l!: will IE in t!E """,.mt of U,S. $ 355.38 . n.., Note Holder w'..J.l c.~
<br />my lOOI1thly pa}'IDi!l1l: as required by Sect:ioo 4( C) lelow on the 6th Interest 01ange Daile and on that day
<br />I?'lery 36th I!I)!lth thereafter. Each of trese dates is called a '1'aym!nt 01ange Date." 'The Note !b1cler
<br />will also charIliJe my lIDtIthly payment on any interest Chan8e Date if Section 5(B) belDw nqu1res me to
<br />!>ly the Full Monthly Amunt.
<br />
<br />(C) Calculatim of M:mthly Payment: Olanges
<br />Before each Payment: 01ange Date, the Note !blder will calculate a new I!I)!lthly payment suffic:l.em:
<br />to repay the IDlpIlid principal balance on my lam in full on the D8turlty date at the Payment Rate'in
<br />substantially equal payments. The '1'ayment Rate" is the SUIl of the IQdex figures on the five
<br />Interest 01ange Dates preceeding a paymnt 01ange Date plus the Current Index, divided by the '.1UIIlet
<br />6 plus 3 ' 1 50 percentage points ( 3 ' I 50 %), roonIed to the nearest one-eigbth of 0Ile
<br />peroet'Ufll'! point (0,125%), Except the pay"',"t ('dte 1.Ii11 not exceed 13.990%.
<br />
<br />(D) Effective Date of Payment Olanges
<br />Until the next Payment: Change Date, I will pay the aDDWlt of my new ~hl:Ypaymenteach~l\.
<br />beginning on the first IIXlDt:hly paylII!nt date after the Payment 01ange Date, or Interest QioIIl8B]l&te:(f
<br />Sectw.", 5(B) tel"", requires lIE to pay the Full Monthly AiD:lunt.
<br />
<br />5, UNPAID PRINCIPAL BAL"~lGE
<br />(A) Olanges in My Unpaid Pr1n:1palllalaree . ..' ". '. "..,.,
<br />My IIDnthly payment o:uld IE less tten the aDDWlt of the intemlt port:lan of thefil:1it--ruu
<br />Monthly Aanmt I owe or less than the interest portim of my fiNt full~y~.af*'an
<br />Interest Change Date. If so, the Ibte Holder will subtract the 8IIIlUlItof mylllld:hly~.~'1;11e'
<br />BIIIUlt of interest I owe and will add the difference to my unpIid prlnclp8l balace:..m..;...!,~~*ofl"
<br />the next lnten!llt Change Date. The Ibte Holder will also add 1nterert onthe'....~Of..!:bJa.r
<br />difference to my IDlpIlid pr:l.DciiJ8l balance each 1IIlIIth. Until the next ltUI:Ila.t ClI8aIIlJ..JlIIte~.~"
<br />Ibte Holde.r detetmines my new interest rate on my then unpIid princlpIl balanr:a, therabrof.~t.
<br />on the interes t aided to principal will be the rate deteDlllned in Section 2 aboue.
<br />
<br />My llIXItl-.ly payment could IE llDl'l! tl1lm the 8IIIlUlIt of the Full lblthly AluJot. If &OJ' the. Nota"
<br />Holder will subtract tIE differen::e hem the unpIid principal balance of my loan each IIIld:h\Klti1the
<br />next Interest 01ange Date as if I had made a jXlrtial prepayment: tRIer Sect:lan 8 below.
<br />
<br />(B) Limit on Unprld Principal Ba.l.aroe.; Rajuired Full Monthly AaDIIIt
<br />My IDlpIlid principal talarce can r.ever exceed a maximD aDDWlt equal to one !u:ldred tweIII:y'-fi'oie'
<br />percent (125%) of the princlpal am:xmt I originally borrowed. If my payi~ the alIIQIt of mytbdlly
<br />pa)llll!llt after any Interest Change Date wwld cause tre unpIid principal balan::e to elCe8ll u..t
<br />IIlIIXlllua aDJIlt at any time, r II1lSt pay lr1ltead the Full Monthly AaDIIIt as my lIIlIIthly. ~uatU
<br />tto! 0l!I<t Pa)'I*!IIt 01ange Date.
<br />
<br />6. CONVERSION TO FIXED RATE AND PAYMENTS
<br />(A) Right to Coovert,
<br />I have tre option, prior to any Payment ~ Date, of converting this 10811 to a f:liaed
<br />interest rate and f il<ed mothly P'I)'lIBIlt plan as provided in this section. Once. I haV!!t~,IIlY.
<br />lean, the interest rate and tre regular m:>nthly payment will r-.in ~ for tm rest of. the"
<br />term of tiE loan.
<br />
<br />(B) Rate and Pa)'1II1!l'I: after Cooversion.
<br />If I elect to convert my loon. then tre interest rate for tre r~ tem will not -..l
<br />the ''F1Jwd Rate IncIex" plus 0,7)0 per<:>em;. The F1Joed Rate Index is the net yield ~'of
<br />Federal Nat.1onsllt>rtlrJl&e Assoc1"liElOO (F!t1t\) for 6O-day lIIIIOlatocy delivery of _ fi1el rate :u.n..
<br />such F:Iiaed Rate Index is available '*"'" tto! rate ql.l<ll:at.ioo referred to in paraarapb 6(C)(2) below is.
<br />l!IIde. The new fi.'lI!li rate "ill IE effecti-..e on the next PayIeIt ~ Date. The new f:lJedpa~
<br />~ will IE the aIlIU1l: ~ lB wffid.ent to repay the UllpII1d pr1nc1pal balance of II\Y 10llD in
<br />full In substantially equal pa~s by the IlBturity date. I will pay this .., fillld alUI1t
<br />beglnnIng on tre first IIDnthly fIl~ date after tto! Payment CIlarwe Date on whid1 I CClM!rted.
<br />
<br />(C) Elercise of F1Joed Rate Optioo.
<br />(1) Request for ~at1on.
<br />If I am interested in converting my loan, r lIIJSt rotlfy the rote ll:>lder. in wr1tUf!. tmt I
<br />wish to have a fi>lai rate and payment quoted to..,. I nust send this request for quotation after
<br />t:ECeiving a Paymot 01ar@.e Ibtice unler section 7 and at least 30 days before tre Paymnt CIlaqpa
<br />Date,
<br />(2) ~ation.
<br />'"h,n it receives my reqte>t for qu>tatlon, tre note ll:>lder will sem lIE a notice qooting
<br />the f il<ed rate and pa)'lll'nt. ~ of fered and the conversion fee Iohlch r will have to pay if I decide
<br />to cat\Iert, The cooversion fee will rot exceed ~rcent of the unpaid principal ba.laoce of tre
<br />loan on the Payuent Olange Date, The note lnl&;r~~ send this quotation at leait 20 oot no IlXlre
<br />tten 30 days before the Payment Change Date,
<br />
<br />(3) Accepti~ ~im and Con-..erti~.
<br />If I wish to OOlM'!n my lean at the f1Jwd rate and payment qwted to 100, 1 tI1Il;[ noclfy the
<br />~-€ holder of "J::j ~ 1;1 ~Titi':-.g. Such rdJtice UlJSt bi:; recd.voi by tla: rlOLt: rDIcier at: least: is
<br />da)'S before tre Paymrt ~ Date and llUSt be acCllllp81uro by the conversion fee,
<br />
<br />( 4) &eductioo of TillIe Periods.
<br />If the Paymot a...,... Notice is rot sent by the rote ll:>lder at least 3S days before the
<br />P..,.n; ~ Date. [lEn each time period stated aIxNe shall be reduced by il..., mys.
<br />
<br />(0) Tet'IIoination of Cc:IrMlrs.lon Optioo.
<br />If the F~ Rate Inclex e....r C>!llllell to be publlst-ed or made available by ~. or II FNW. ever
<br />~ qUClt.irc am po....chas~ mrtgS&e 10lU'l8 on tIE basis 00loI reflected by the Fil<ed Rate It>Jex, the"
<br />tl1l.s COOJWOttI.\on opt,lon shill.! telllliDate am tlili\ section & 8M11 ce-aae to M"" dny d feet, lk_""..,
<br />it by that t.lsa!. I Mw alr...dy occepl:ed a quotation and """,...nro my loan, such tennl.nat ion will not
<br />affe<;t..,. l'lY fi."oo rntlil ..m (6)'1l1'tlt will> in t".t ~ > nmain in lull !<on", i.ro eHect,
<br />
<br />
|