15-Year Home Equity Line of Credit Disclosure

Important Terms of Our Home Equity Line of Credit

Retention of Information: This disclosure contains important information about our Home Equity Line of Credit. You should read it carefully and keep a copy for your records.

Availability of Terms: All of the terms described below are subject to change. If these terms change (other than the annual percentage rate) and you decide, as a result, not to enter into an agreement with us, you are entitled to a refund of any fees you paid to us or anyone else in connection with your application.

Security Interest: We will take a mortgage on your home. You could lose your home if you do not meet the obligations in your agreement with us.

Possible Actions: We can terminate your line and require you to pay us the entire outstanding balance in one payment and charge you certain fees, if:

  • You engage in fraud or material misrepresentation in connection with the line.
  • You do not meet the repayment terms.
  • Your action or inaction adversely affects the collateral or our rights in the collateral.

We can refuse to make additional extensions of credit or reduce your credit limit if:

  • The value of the dwelling securing the line declines significantly below its appraised value for purposes of the line.
  • We reasonably believe you will not be able to meet the repayment requirements due to a material change in your financial circumstances.
  • You are in default of a material obligation in the agreement.
  • Government action prevents us from imposing the annual percentage rate provided for or impairs our security interest such that the value of the interest is less than 120 percent of the credit line.
  • A regulatory agency has notified us that continued advances would constitute an unsafe and unsound practice.
  • The maximum annual percentage rate is reached.

Minimum Payment Requirements: You can obtain advances of credit for an indefinite period. During this period, your payments will be due monthly. Your minimum monthly payment will equal the sum of accrued finance charges, credit life insurance premium (if any) and 1/180th of the outstanding principal balance of your account at the time of your last advance.

Minimum Payment Examples: If you made only the minimum monthly payments and took no other credit advances, it would take 15 years to pay off a credit advance of $10,000 at an ANNUAL PERCENTAGE RATE of 6.25%. During that period, you would make 180 monthly payments varying between $55.85 and $108.64.

Fees and Charges: To open and maintain a line of credit, you must pay us an annual maintenance fee of $25.00. This fee is due at the end of the first year and every year thereafter. You must also carry insurance (including flood insurance, if applicable) on the property that secures the line. In addition:

If the amount of the credit line is $100,000 or less there are certain third party fees and charges, which we pay, and you may be obligated to reimburse to us on a deferred basis. While the amounts of these can vary, they include an appraisal fee, which is generally $200.00 to $250.00, a credit report fee which is generally $11.33 for a single report or $ 18.92 for a joint report, a property or lien search fee which is generally $72.00, and a flood certification fee which is generally $8.48,recording fees which is generally $54.50 for a total which is generally $346.31 to $458.90. If your line is closed or you are in default at any time within 36 months from the date of your Credit Line Agreement, you will be obligated to reimburse us these charges and they will be added to your final payoff amount. If your line remains open without default for 36 months from the date of your Credit Line Agreement, we will waive reimbursement of these fees and charges.

Upon request, we will provide you with itemization of the fees you will have to pay to third parties.

Minimum Draw Requirement: The minimum credit advance that you can receive is $100.

Tax Deductibility: You should consult a tax advisor regarding the deductibility of interest and charges for the line.

Variable-Rate Feature: The line has a variable-rate feature and the annual percentage rate (corresponding to the periodic rate) and the minimum monthly payment can change as a result. The annual percentage rate includes only interest and not other costs.

The annual percentage rate is based on the value of an index. The index is the highest prime rate published in The Wall Street Journal “Money Rates” table on the first business day of the month. To determine the annual percentage rate that will apply to your line, we add a margin to the value of the index.

Ask us for the current index value, margin and annual percentage rate. After you open a credit line, rate information will be provided on periodic statements that we send you.

Rate Changes: The annual percentage rate can change monthly. The maximum ANNUAL PERCENTAGE RATE that can apply is 18%.

Maximum Rate and Payment Example: If you had an outstanding balance of $10,000, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 18.00% would be $208.44. This annual percentage rate could be reached during the first month.

Historical Example: The following table shows how the annual percentage rate and the minimum monthly payments for a single $10,000 credit advance would have changed based on changes in the index over the past 15 years. The index values are from August 1st of each year. While only one payment amount per year is shown, payments would have varied during each year.

The table assumes that no additional credit advances were taken, that only the minimum payments were made each month, and that the rate remained constant during each year. It does not necessarily indicate how the index or your payments will change in the future.

Index %
Margin* Annual Percentage Rate (APR)
Minimum Monthly Payment
2004 4.250% 0.00% 4.250% $55.50
2005 6.250% 0.00% 6.250% $54.18
2006 8.250% 0.00% 8.250% $68.12
2007 8.250% 0.00% 8.250% $68.12
2008 5.000% 0.00% 5.000% $53.96
2009 3.500% 0.00% 3.500% $53.07
2010 3.500% 0.00% 3.500% $51.41
2011 3.500% 0.00% 3.500% $50.00
2012 3.500% 0.00% 3.500% $50.00
2013 3.500% 0.00% 3.500% $50.00
2014 3.500% 0.00% 3.500% $50.00
2015 3.500% 0.00% 3.500% $50.00
2016 3.500% 0.00% 3.500% $50.00
2017 4.250% 0.00% 4.250% $50.00
2018 5.000% 0.00% 5.000% $50.00

*This is a margin we have used recently

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