[NoteSmith user: The text of this boilerplate BP-ADJR_ANA.TXT needs to be kept short--about 20 lines--so it fits within the space allocated and keeps your report to one page. Modify it from Tools, Text Editor, Open. Do NOT include these directions for customer printouts.]

Include an explanation of the rate change, the fact that the remaining payments or term will stay the same, and that the note will still amortize normally. Specify if the payment amount changes on the interest change date or on the following payment. For instance:

Your next payment should be made at the new amount. The amount due and the due date are shown below. --or--

Your next payment can be made at the old amount. After you make the payment due as shown below, future payments should be for the new amount. --or--

Your next payment can be made at the new or the old amount with interest calculated at the old rate. Starting with the payment after the one indicated, you must make your payment at the new amount and interest will be calculated at the new rate.

