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<br />84 -"02923
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<br />(B) Anvunt of Monthly Payuents
<br />My 1IDtlthly fBJ1III'nt will l:e in tre aIlDUIlt of U.S, $ 234,64 ,The Note Holder will change
<br />my llIXlthly payment as required by Section 4(C) be.la.r on tre 6th Interest Change Date an! on that day
<br />fNery 36th mnt:h trereafter. Each of tlEse dates is cal1erl a "P"J1III'nt Change Date." The Note Holder
<br />will also chan@Ie my IIDnthly pa}'lllE!llt on any Interest Change Date if Section S(B) be.la.r NqUires me to
<br />P8Y the Full /otlnthly Amount,
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<br />(C) Calculation of Itmthly Payment Chan;jes
<br />Before each Payment Change Date, tre Note Holder will calculate a new mnt:hly payIIIeIt sufficie.-:
<br />to repay the unpaid principal balance on my loan in full on the maturity date at the Payment Rate in
<br />substantially equal payments, The '1'aymenI: Rate" is tre S\D of tre Irdex figures on tre five
<br />Interest Change Dates preceeding a P"J1III'nt Change Date plus the Current Index, divided by the IUllber
<br />6 plus, I )' percentage points ( J. 150 %). IUlIIIerl to tre nearest one-eighth of one
<br />percert:.age point to.l25%). !-:xcl-'rt the ;~lY'r~nt rate w1ll not exceL,,!j 13.990t:.
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<br />(D) Effective Date of Payment CharJ8es
<br />Until tre I1eltt P"J1III'nt Change Date. I will pay the amJUI1t of my new mnt:hl y lBY'""nt each IIDTIl:h
<br />l:egI.nning on the first 1lD11thly payment date after tre Payment Change Date, or Interest Change Date if
<br />Section S(B) below t'ajuires '"" to pay t:he Full Monthly i\oIJunt.
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<br />5, UNPAID PRINCIPAL BALANCE
<br />(A) ~ in My Unpaid Principal Balazre
<br />My 1IDtlthly fBytI21lt coold be less tmn t:he am:JUnt of tre interest portion of tre first Full
<br />ltx1thly i\oIJunt I """ or less than the interest portion of my first full !blI:hly i\aDmt after an
<br />Interest Change Date, If so, t:he Note Holder will subttact the lIIIIlUDt of my IlIlIIthly ~ fmlthe
<br />llIID.I1t of interest I OWII! an! will add t:he difference to my unpaid principll. balance each -*tnllltU
<br />tre next Interest Change Date, The Note Holder will also add :lnten!st on the __ of, tIdB:
<br />difference to my unpaid principal balance each llDllth. Until the next InteJ:est 0uaI8e DIlta..-.n. the
<br />l'tte Holder deteJ:lllines my new interest rate on my then unpaid principallalam:e, the rate of ~t
<br />on tre interest added to principal will be t:he rate deteIlllined in Section 2 abcwe.
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<br />My llICDthly p8}'IIIeIlt could be IlI)re tmn the aIIIlltt of tre Full Itlnthly AaDmt. If so, the Note
<br />Holder will subttact tre diffe= frem tre unpaid principal balarx:e of my loan each IIIlIlth UlItil the
<br />neKt: Interest Change Date as j.' T had 0Bde a partial prepayment; tnler Section 8 below.
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<br />(B) lJJIlit 00 Unpaid Principal Balance; Rfquired Fullltlnthly AIIIcunt
<br />My unpaid principal laIance can never "l<Ce€d a maxinun amJUOt equal to one !uIdred two9:y'-fiw
<br />percent (125%) of tre principal aoIlUOt 1 originally bolTClOOOld, If my paying the lIIIIlUDt of my 1IIlIlthly
<br />fByment after any int:erest Change Date WOJ.l.d cause ttE unpaid principal lJ1.laa:e to exceed tlat
<br />IIIIXilIuo aIIIlUIlt at any time, I IIllSt pay instead tre Full t>t:>nth1y AIIIcunt as my !IDIIthl.y ~.tmtU
<br />the next P~ Change Date.
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<br />6, CONVERSION TO FIXED RATE AND PAYMENTS
<br />(A) Right to Corr.Iett,
<br />I have tre option. prior to any Payment Change Date, of converting this loan to a fillllld
<br />interest rate and f i>ed IIDnthly fByment plan as provided in this section. Once I hlNa. CODWrted...
<br />lean. t:he interest rate an! ttE regular IIDnthly ~ will rE!l8in ~ for the. reat of the
<br />term of t:he loan.
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<br />(B) Rate and Payment after Conversion.
<br />If I elect to <:.or1'.'ert my loan. tbm t:he interest rate for tre ~ renawUl not E!l!Ceed
<br />the '"Filoed Rate Index" plus ,~, 7 ~)(! percent. The Filoed Rate Index is the net y1eld~,ot
<br />Federal National ~rtgqe AssiiCiiiEOO (FtK) for 6O-day lIIIrdatory delivery of .., fiB tate ~,.:
<br />such Filoed Rate lndex is available wtlen the rate quotation referred to in ~6(C)(2} .~1a,
<br />..." The new fi_'lIlIi rate will be effective on ere next Pa)lllBlt 0laqJe Date. The..,. f':b!IId~
<br />aIIlUlt will be the aIIlUlt 'otdch is ~fid.ent to repay the uqaid pr1nc1pal IBJ.IRce of., ~.in
<br />full in substalltially equll pII)'lIl!IU by t:he ..turity date. I will ~ tb18.., a.i........
<br />beginning on tre first 1IDnthly pa,JlIIrt date after the Pl1}lIIIent ~ Date on lotlidl I ~l'ted.
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<br />(C) Elercise of Filoed Rate Option.
<br />(1) Rfquest for ~tion.
<br />If I am interested in cooverting my loan, I IlI.ISt oatify the oate rolder, inwr1~. that I
<br />wish to have a filoed rate an! lBY'""nt quoted to ,"". I lIIJSt send this teqUllBt for quotation after
<br />receiving a Payment ~ Notice unler section 7 an! at least 30 days befON tre Pl1}lIIIent ~
<br />Date,
<br />(2) ~tion.
<br />\ohm it ra:eives my t'ajlESt for qUltation, tre note oolder will sew ... a oat.ice quotq
<br />t:he f1>aed rate an! payment being offered and tre conversion fee 'otdch I will have to ~ j.f I decide
<br />to crovert. The conversion fee will rot exceed ~percent of tre unpaid principal ba1ame of the
<br />loan 00 the Payment Olange Date. The note rolder will sew this quotation at least 20 oot no IIDrn
<br />than 30 days before t:he Payment ~ Date.
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<br />(3) ~ ~ an! OxNerting,
<br />If I wish to ClJIlvert my loan at the filoed rate an! pliyment qooted to De. I IlIIIlt oatify tre
<br />note roldet of my ~'1'f~ in writing. Such notice IIllSt be received by the note rolder at least 15
<br />days before t:he PaJlllrt ~ Date and lllUSt be accalll*1ied by t:he conversion fee.
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<br />(4) Reduct:iDn of T1a Periods.
<br />If the Pl1}lIIIent ~ Notice is oat sent by t:he oate OOlder at least 35 days before the
<br />~ <bIqje Date. tI1m eaclI time period stated abcwe smll be rtduoed by five days.
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<br />(D) TenIl.lIat:lon of ConvemiDn Option.
<br />If tbe FUed Rate tndex ever ceases to be p.>bllsl'ed or 0Bde availsble by ~. or if FIft\ ever
<br />cea&eIiI qlMlting and putchasJ.ng IIIlI1:gajjIB 108Il8 on the basis now reflected by the F1>ed Rate Irdex, then
<br />this <XlIM1'a1on opt.ion shall teradnate and this section b smll cease to haw any .>freet, Ilcwover,
<br />if by thRl: tlae, r have a.J..ready accepted a quotation and cr.nverted my loan, such termination will not
<br />affect.. My fi"""'" rat>> ani payment wLU, In that event, ,.....in in full force alll eff'&-:t,
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