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

1. AVAILABILITY OF TERMS. All 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 that you have paid to us or anyone else in connection with your application.
2. SECURITY INTEREST. We will take a security interest in your home. You could lose your home if you do not meet the obligations in your agreement with us.
3. POSSIBLE ACTIONS. 

• Under certain circumstances, we can:
  1. Terminate your line of credit and require you to pay us the entire outstanding balance in one payment;
  2. Refuse to make additional extensions of credit; and
  3. Reduce your credit limit.
• We can terminate your line of credit and require you to pay us the entire outstanding balance in one payment if:
  1. You engage in fraud or material misrepresentation in connection with the line of credit;
  2. You fail to make a payment as required by the agreement; or
  3. 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:
  1. The value of the dwelling securing the line of credit declines significantly below its appraised value for purposes of the line of credit;
  2. We reasonably believe you will not be able to meet the repayment requirements under the line of credit due to a material change in your financial circumstances;
  3. You are in default of a material obligation of the agreement;
  4. Government action prevents us from imposing the annual percentage rate provided for in the agreement, or impairs our security interest such that the value of the interest is less than 120 percent of the credit limit on the line of credit;
  5. A regulatory agency has notified us that continued advances would constitute an unsafe and unsound practice; or
  6. The maximum annual percentage rate is reached.

4. MINIMUM PAYMENT REQUIREMENTS. You can obtain credit advances for 10 years (the “Draw Period”). During the Draw Period, payments will be due monthly. Your minimum periodic payment will be equal to the interest that has accrued on your Account as of the closing date of each billing statement.

   After the Draw Period ends, you will no longer be able to obtain credit advances and must pay the outstanding balance over 15 years (the “Repayment Period”). Your minimum periodic payment during the Repayment Period will be determined based on the outstanding balance of your Account at the beginning of the Repayment Period and using the interest rate in effect at the beginning of the Repayment Period to calculate equal monthly payments which will fully amortize your Account.

5. MINIMUM PAYMENT EXAMPLE. If you made only the minimum monthly payment and took no other credit advances, it would take 25 years to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 8.25%. During the draw period, you would make 120 monthly payments of $68.75. During the Repayment Period, you would make 179 monthly payments of $97.01. This would be followed by one final payment of $97.01.

6. FEES AND CHARGES. To open and maintain a line of credit, you must pay the following fees to us:

   Loan Processing Fee: $0.00-$150.00 (due when account is opened). You may also pay certain fees to third parties, such as appraisers, credit reporting firms, and government agencies. These fees generally total between $0.00 and $3,000.00. If you ask, we will provide you with an itemization of the fees you will have to pay to third parties.

7. REFUNDABILITY OF FEES. If you decide not to enter into this plan within three days of receiving this disclosure and the Home Equity Booklet, you are entitled to a refund of any fee you may have already paid.

8. TAX DEDUCTIBILITY. You should consult a tax advisor regarding the deductibility of interest and charges for the line of credit.

9. VARIABLE RATE FEATURES. This line of credit has a variable rate feature and the annual percentage rate (corresponding to the periodic rate) and the minimum monthly or quarterly 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 base rate on corporate loans posted by at least 70% of the 30 largest U.S. banks known as the Wall Street Journal U.S. Prime Rate and is published in the Wall Street Journal. To determine the annual percentage rate that will apply to your line of credit, we add a margin to the value of the index and then round to the nearest .001 percent. Ask us for the current index value, margin, and annual percentage rate. After you open a line of credit, rate information will be provided on periodic statements that we send you.

10. RATE CHANGES. The annual percentage rate can change daily. There is no limit on the amount by which the rate can change in any one-year period.  The maximum ANNUAL PERCENTAGE RATE that can apply during the line of credit is 21.000 percent.

11. MAXIMUM RATE AND PAYMENT EXAMPLES. Under the monthly payment option, if you had an outstanding balance of $10,000.00 the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 21.000 percent would be $175.00. The maximum annual percentage rate could be reached in the 1st month (1 month) following an initial hold of 1 day.

    Rate could be reached the first time your Annual Percentage Rate changes, unless your initial rate is equal to the maximum, in which case it would be reached immediately. If you had an outstanding balance of $10,000 at the beginning of the Repayment Period, the minimum payment at the maximum ANNUAL PERCENTAGE RATE OF 21.000% would be $183.06. This Annual Percentage Rate could be reached at the beginning of the Repayment Period.

12. HISTORICAL EXAMPLES. The following table shows how the annual percentage rate and the minimum payments for a single $10,000.00 credit advance would have changed based on changes in the index over the last 15 years. The index values are from the first business day of January. While only one monthly payment amount per year is shown, payments would have varied during each year under the monthly payment option. The table assumes that no additional credit advances were taken, that only the minimum payment was made, and that the rate remained constant during each year. It does not necessarily indicate how the index, or your payments would change in the future.

     

    Year	Index (%)	Margin* (%)	Annual Percentage Rate (%)	10-year Draw Period Minimum Periodic Payment	15-year Repayment Period Minimum Periodic  Payment
    2009	3.25	4.25	7.50	$62.50
    2010	3.25	4.25	7.50	$62.50
    2011	3.25	4.25	7.50	$62.50
    2012	3.25	4.25	7.50	$62.50
    2013	3.25	2.75	6.00	$50.00
    2014	3.25	1.25	4.50		$76.50
    2015	3.25	1.25	4.50		$76.50
    2016	3.50	0.75	4.25		$75.23
    2017	3.75	0.75	4.50		$76.50
    2018	4.50	0.75	5.25		$80.39
    2019	5.50	0.75	6.25		$85.74
    2020	3.75	0.75	4.50		$76.50
    2021	3.25	0.75	4.00		$73.97
    2022	3.25	0.75	4.00		$73.97
    2022	3.25	0.75	4.00		$73.97
    2023	7.50	0.75	8.25		$97.01
    2024	8.50	0.75	9.25		$102.92

*This is a margin we have used recently; your margin may be different.
 *Draw period ends on the 120th month.

This is not a commitment to make a loan. (4/2024)

Consumer Finance Protection Bureau (CFPB)

Consumer Handbook on Home Equity Lines of Credit (PDF)