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<br />84 __002805
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<br />(B) /11IDUI1t of Monthly Pa)'lIEnts ,
<br />My llDIlthly P'ytrent will IE in tll? annunt of U,S, S 246,98 The Note HolcEr will change
<br />my lOOIlthly payment as required by Section 4(C) below oothe 6th Interest Change Date an:! on that clerJ
<br />every 36th IIDnth thereafter, Each of these dates is called a '1'aytrent Change Date." The Note Holder
<br />will also change my lIDnthly payment on any Interest Change Date if Section 5(B) below requires Ile to
<br />pay the Full l'bTtthl Y ADD.mt,
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<br />(C) Calculation of l'bnthly Paytrent Changes
<br />Before eaoh Paynent Change Date, the Note HolcEr will calculate a I1f3J IIDnthly paytrent sufficient
<br />to repay the unpaid principal balance on my loan in full on the maturity date at the PaytII!nt Rate in
<br />sul:6tantially equal payaents. The "Payaent Rate" is the sum of tre In:!ex figures on the five
<br />Interest Change Dates preceeding a Pa)'lIEnt Change Date plus the Current Index, divided by the t1lIIIb..r
<br />6 plus J. 150 percentage points ( J. 1 50 %), ro.mled to the nearest one-eighth of one
<br />percentage point (0,125%), ,:xcept the paVl1Ent rate will not exceed 13.990%,
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<br />(D) Effective Date of Payment Changes
<br />Until tre next PaYllent Change Date, I will pay tll? al!D\JIlt of my I1f3J I1Dnthly jl'lytrent each mnth
<br />beginning on the first lIDnthly paytrent date after the Paytrent Change Date, or IntereSt Change Date if
<br />Section 5(B) below requires Ile to jl'lY the Full Monthly ADD.mt.
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<br />5, U~~AID PRINCIPAL BALANCE
<br />(A) Changes in My Unpaid Prircipal Balalxe
<br />My IlDnthly jl'lytrent cwld be less than tll? annunt of tba int:erest portion of the first Full
<br />l'bnthly Amlunt I owe or less than the interest portion of my first full l'bTtthly Amount after an
<br />Interest Change Date, If so, tll? Note Holder will subtract the aoDUnt of my 1IDIlthly payuentfmD tte
<br />aIIIllIlt of interes t I owe ani .,;...1l add tIE dif ference to Dr; unpaid prir.cipal balance each IIIXIth Ulltil
<br />the next Interest Change Date. The Note lblder will also add interest on tie 8IIIlUIIt of this
<br />difference to my unpaid principal balance each DD11th. Until the next: Interest 01anae Date atIen tte
<br />Note Holder deteIlllines my neo1 interest rate on my then unpaid principal balan:e, tie rate of interest
<br />on tba interest aided to principal will be tre rate deteminad in Section 2 above.
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<br />My llIlI1thly payaent could be llOte than the a1D:Imt of tte Full It:Jnthl.y AmllIm1:. If so, tie Note.
<br />Holder will subtract tre differerr::e rran tba unpaid principal balaree of my loan each 1IDlIth untiJ. tba
<br />next Interest Change Date as if I had made a jl'lrtial prepaytrent un:ler Section 8 beloil.
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<br />(B) Limit on Unpaid Principal Balance; Required Fulll'bnthly Amount
<br />My unpaid principal lalan:e can never exceoo a maxiDun annunt equal to one tumed ~five
<br />r-ercent (1257.) or the principal annunt I originally boI'I'OW8:l. If my paying the llIIWIIt of my umltI'ily
<br />[aytrent after any Interest Change Date would cause tre unpaid principal ba.lanceto e>>:eedytbat
<br />max:inuIl aanmt at any time, r QJSt pay iIl3tead tba Full l'bnl:hl.y Amount as my 1lIlI1thl)' ~"UIItil,
<br />tba next Payment. Change Date,
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<br />6, CONVERSION TO FIXED RATE AND PAYMENTS
<br />(A) Right to Convert.
<br />I have the option, prior to any paytrent Change Date, of COll\lerting thi!; loan to a fu..d
<br />interest rate and fixed IIDnthly payment plan as provided in this section. Once I have converted-my
<br />loon. tre interest rate and tre regular mothly payaent will r€llllUn lIIlCI1aq;jed for tba.rest,oftle'
<br />term of tll? loan,
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<br />(B) Rate ani PaytIIIDt after Conversion.
<br />If I elect to convert my loan, then the interest rate for tre. taIII.iniqj tellllv.U1l1fXelllll!!!!h
<br />the "Fixed Rate Index" plus 0.750 r-ercent. The FUed Rate Index is tba net yi~~'~',
<br />Fedel:al Nationallok>rtgage Assoc1--atIOO (~) for 6O-day manlatory delivery of IBif:lJaed',~~~,.-,-'
<br />sucll FUed Rate Index is available when the rate quotation referred to in pspgr~q(C)(2),.~J~,~".
<br />1I6de. The new fUed rate will be effective on tre oext Paymont ~ Da~. The ,~,~.~
<br />aownt will be the amount Iohich is ~ficieot to repay the unpaid pdJlcipal ~ of....,;,~,in
<br />full in substantially equal jl'l~s by the maturity date. I will pay t~ 1lSiI~,:~,
<br />beginnjng on the first lJl)othly (Byment date after tre Payment Chaq,fe Dare on ~ I COIMln:ed.
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<br />(C) E>cercise of FUed Rate Option.
<br />(1) Request for ~ation.
<br />If I am interested in convert~ my loan, I DlJSt rotify tbe note l'Dlder, in wrlt:4w. that I
<br />wish to have a fiJWd rate am jl'l)'lllmt quoted to 100. I DlJSt send this request for q~ after
<br />receiving a Payment Change Notice unler section 7 an:! at least 30 days before the p~ Chaijpl
<br />Date,
<br />(2) ~ation.
<br />\,ban it receives my request for quotation, tba note l'Dlder will sen! 100 a notice quot~
<br />the fixed rate an:! paytrent being of fered and the conversion fee Iohich I will have to pay if I decide
<br />to convert. The conversion fee will oot exceed ~rcent of t!-e unpaid principal balarce of the
<br />loan on the Payment 01ange Date, The note lclder will send this quotation at least 20 l:ut no DDre
<br />than 30 days before tre Paytrent Change Date.
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<br />(3) Acce~ Q.lotation and Converting,
<br />If I wish to convert my loan at tll? fixed rate ani payment quoted to Ile, IlllJSt rotify the
<br />rote lclder of my acceptance in writing, Such notice lllJSt be receiwd by the note !nlder at least 15
<br />days before tre Payment Olange Date an:! DlJSt be accalll>'nied by the conversion fee.
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<br />(4) ROOuction or TiJre Periods.
<br />If tba Payment Charcge Notice is not sent by tll? note !nlcEr at least 35 days before tre
<br />Payment CllaIJge Dare, tren ea:h tJJoo period stated above shall be reduced by five days,
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<br />(D) Teminat.ial or C<xlversion Option.
<br />if the FUed Rate Ill:leX ever ceases to be pub1isl-ed or IIl3de aV'dilable by r~, or if r'NMt. "ver
<br />ceases qwting ani purch.asi'1!\ !1X)rt~ loou> on tre basis 00i0' reflect~>d by the FiXll<l Rate Index. tren
<br />tl'Js c""".,rs.ion opt ion shalt tennil1ate ani thi.. sa:t ion 6 slW.l ee.ase to have 3m ef k'Cl ' Be...,,,.,, ,
<br />if.by that t~, I have a.lready <tCLx..-pted a quOt-athJt1 arLi COtl\I'en.ed my 1ctll1. such t:~l1niH..it:l!.}l1 wU.1 not
<br />;tfta-:t ltl~. ~ ft.xrod r'.at.i~ arrl p.3.~,nt ......-11t. tn that t!V{,;"ut. rElnail~ in full force ~uu e.f[pct.
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