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20��05�0� (C) C�Icule#ion of Interest Rate Changes Before each Change Date, Lender wifl calculate a new interest rate by adding a margin of ONE AND TSREE percentage point{s) ( 1.750 %) to the Current Index and rounding the sum ta the nearest one-eighth of one percentage point t0.125%). Subject to the limits stated in paragraph (D) of this Rider, this rounded amount will be the new interest rate until the next Change Date. {D) Limits on Interest Rate Chenges The existing interest rate will never increase or decrease by more than ONE percentage pointls) ( 1%) dn any singfe Change Date. The interest rate will never be more than �'IVE percentage points ( 5%} higher or lower than the initial interest rate stated in Paragraph 2 of the Note. {E) Calculation of P�yment Change If the interest rate changes on a Change Date, Lender will calculate the amount of monthly payment of principal and interest which would be necessary to repay the unpaid principal balance in full at the Maturity Date at the new interest rate through substantia(ty equal payments. In making such calculation, Lender will use the unpaid principal balance which woufd be owed on the Change Date if there had been no default in payment on the Note, reduced by the amount of any prepayments to principal. The result of this calculation will be the amount of the new monthly payment of principal and interest. �F) IVotice of Chenges Lender will give notice to Borrower of any change in the interest rate and monthly payment amount. The notice must be given at least 25 days before the new monthly paymenfi amounfi is due, and must set forth 1i► the date of tF�e notice, .(ii) the Change Date, (iii) the old interest rate, (iv) the new interest rate, (v► the new monthly payment amount, (vi? the Current Index and the date it was published, {vii) the method of calculating the change in monthly payment amount, and lviii} any other informafiion which may be required by law from time to time. (G) EfiFective Date of Chenges A new interest rate calculated in accordance with paragraphs �C� and (D) of fihis Rider will become effective on the Change Date. Borrower shall make a payment in the new monthly amount beginning an the first payment date which occurs at least 25 days after Lender has given Borrower the notice of changes required by paragraph !Fi of this Rider. Borrower shall have no obligation to pay any increase in the monthly payment amount calculated in accordance wifih paragraph (E) of this Rider for any payment date occurring less than 25 days after Lender has given the required notice. If the monthly payment at�nount calculated in accordance with paragraph (E� of this Rider decreased, but Lender failed to give timely notice of the decrease and Borrower made any monthly payment amounts exceeding the payment amount which should have been stated in a fiimely notice, then Borrower has the option to either (i) demand the return to Borrower of any excess payment, with interest thereon at tF�e Note rate {a rate equal to the interest rate which should have been stated in a timely notice), or (ii) request that any excess payment, with interest thereon at the Note rate, be applied as payment of principal. Lender's obligation to return any excess payment with interest on demand is not assignable even if the Note is otherwise assigned before the demand for return is made. Initials. �'��- �-591U (0405y.01 Page 2 of 3