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ADJUSTABLE RATE RIDER

(Three-Year Treasury Index–Rate Caps–Fixed Rate Conversion Option)

THIS ADJUSTABLE RATE RIDER is made this ____ day of

________________, ____, and is

incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the

“Security Instrument”) of the same date given by the undersigned (“Borrower”) to secure Borrower’s Adjustable

Rate Note (the “Note”) to ___________________________________________________________ (“Lender”) of

the same date and covering the property described in the Security Instrument and located at:

_____________________________________________________________________________________________

[Property Address]

THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE

INTEREST RATE AND THE MONTHLY PAYMENT.

THE NOTE LIMITS THE

AMOUNT BORROWER’S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY

ONE TIME AND THE MINIMUM AND MAXIMUM RATES BORROWER MUST PAY.

THE NOTE ALSO CONTAINS THE OPTION TO CONVERT THE ADJUSTABLE RATE

TO A FIXED RATE.

ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security

Instrument, Borrower and Lender further covenant and agree as follows:

ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES

The Note provides for an initial interest rate of ___________%. The Note provides for changes in the

adjustable interest rate and the monthly payments, as follows:

INTEREST RATE AND MONTHLY PAYMENT CHANGES

(A)

Change Dates

The interest rate I will pay may change on the first day of ____________________, ____, and on that day

every 36th month thereafter. Each date on which my interest rate could change is called a “Change Date.”

(B)

The Index

Beginning with 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 three years, as made

available by the Federal Reserve Board. The most recent Index value available as of the date 45 days before each

Change Date is called the “Current Index,” provided that if the Current Index is less than zero, then the Current

Index will be deemed to be zero for purposes of calculating my interest rate.

If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable

information. The Note Holder will give me notice of this choice.

(C)

Calculation of Changes

Before each Change Date, the Note Holder will calculate my new interest rate by adding ____________

percentage points (___________%) (the “Margin”) to the Current Index. The Note Holder will then round the result

of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section

4(D) 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 monthly payment.

(D)

Limits on Interest Rate Changes

The interest rate I am required to pay at the first Change Date will not be greater than ___________% or

less than ___________%. Thereafter, my interest rate will never be increased or decreased on any single Change

Date by more than two percentage points from the rate of interest I have been paying for the preceding 36 months.

My interest rate will never be greater than ___________%, which is called the “Maximum Rate,” or less than the

Margin.

(E)

Effective Date of Changes

My new interest rate will become effective on each Change Date. I will pay the amount of my new

monthly payment beginning on the first monthly payment date after the Change Date until the amount of my

monthly payment changes again.

(F)

Notice of Changes

The Note Holder will deliver or mail to me a notice of any changes in my adjustable interest rate and the

amount of my monthly payment before the effective date of any change. The notice will include information

MULTISTATE ADJUSTABLE RATE RIDER—ARM PLAN 650—Single Family—Fannie Mae Uniform InstrumentForm 3115 1/01 (rev. 6/16) (Page 1 of 3)

Form 3115 - Adjustable Rate Rider (Three-Year Treasury Index-Rate Caps-Fixed Rate Conversion Option)

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