IMPORTANT TERMS of our HOME EQUITY LINE OF CREDIT 1% Payment / 10 year draw / 20 year repayment / 24 Month Fixed Rate / Prime + 1% 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 security interest in 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, 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 your home has fallen below the amount of its appraised value at this time; Your financial circumstances have changed to such an extent that we believe you will be unable to repay the loan; You are in default of any material provision of this Agreement. Credit Union membership is a material provision of the Agreement; We cannot impose the ANNUAL PERCENTAGE RATE provided for by the terms of this Agreement due to government action to the extent that the priority of our security interest is less than 120% of the credit line; A regulatory agency has notified us that continued advances would be an unsafe or unsound practice; The maximum rate allowed under the plan, if any, has been reached; The initial agreement permits us to make certain changes to the terms of the agreement at a specified time or upon the occurrence of specified events. Minimum Payment Requirements: You can obtain advances of credit for 10 years (the "draw period ). During the draw period, payments will be due monthly. Your minimum monthly payment will be determined by the following method: The amount of your minimum monthly payment will be 1.00% of the outstanding principal balance. On the 15 th of each month, an analysis is completed. If advances have been made during the previous 30 days, your payment will be calculated based on the balance including advances taken up to the 15 th. In no event will your minimum payment be less than $50.00, unless the amount that you owe is less, in which case that will be the minimum payment. After the draw period ends, you will no longer be able to obtain credit advances and must pay the outstanding balance on your account (the repayment period ). The length of the repayment period is 20 year(s). During the repayment period, payments will be due monthly. You minimum monthly payment will equal 1.00% of the outstanding principal balance.
The minimum monthly payments may not be sufficient to fully repay the principal on your line by the end of the repayment period. If they are not, you will then be required to pay the entire balance in a single payment. Minimum Payment Example: If you took an advance of $10,000 and took no other credit advance, and make only the minimum payments (calculated at 8.500%, an ANNUAL PERCENTAGE RATE recently in effect) you would have minimum monthly payments of $100.00. During that time, you would make 175 monthly payments. Fees & Charges: To open and maintain a line of credit: You may be required to pay certain fees to third parties to open a line, referred to as closing costs. Subordination Fee - Ask us for the Subordination Fee in effect. If you ask, we will provide you with an itemization of the fees you will have to pay. The mortgage recording tax and title insurance fee shall be based on the maximum amount of the credit line available to you, whether advanced or not. Property Insurance: You must carry insurance on the property that is secured by this loan. Early Closure Fee: If the HELOC is closed or refinanced within three years of origination an Early Closure Fee may be charged. This Fee would be charged if the loan were obtained with a no fee offer. The Early Closure Fee would then be payable to NICU as reimbursement for loan origination costs that were covered by NICU. See the following table for the current early closure fee structure; HELOC Limit Early Closure Fee $100,000 $500 >$100,000 -$250,000 $1,000 >$250,000. $1500 Minimum Draw: No minimum advance amounts are required. Tax Deductibility: You should consult a tax advisor regarding the deductibility of interest and charges for the line. Fixed-Variable-Rate Feature: The Initial ANNUAL PERCENTAGE RATE may be discounted (at a fixed rate) and shall remain in remain in effect for the first 24 months which means it is not based on the Index plus margin as used for later adjustments. After the initial discounted rate period, the line has a variablerate feature, and the ANNUAL PERCENTAGE RATE (corresponding to the periodic rate) or payment can change as a result. The APR excludes costs other than interest. The ANNUAL PERCENTAGE RATE is based on the value of an index. The index is the Major Bank Prime Rate as published in The Wall Street Journal. To determine the Annual Percentage Rate that will apply to your credit line we add a margin as stated in your credit agreement to the value of the index. Ask us for the current index value, discounted rate, margin and Annual Percentage Rate. After you open a credit line, rate information will be provided on periodic statements that we send you. The initial discounted start rate is an introductory rate offered only once per member. Rate Changes: The Initial ANNUAL PERCENTAGE RATE shall remain in effect for the first 24 months of this loan. Thereafter, it can change quarterly. The rate cannot increase or decrease by more than 4 percentage point(s) in any one year period. The maximum ANNUAL PERCENTAGE RATE that can apply is 12.0% and the minimum ANNUAL PERCENTAGE RATE is 4%.
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 12% under this program would be $100.00. This Annual Percentage Rate could be reached upon the first interest rate Change Date Historical Example: The following table shows how the Annual Percentage Rate and the minimum payments for a single $10,000 credit advance have changed based on changes in the index over the past 15 years. The index values are from July of each year. The table assumes that no additional credit advances were taken, that only the minimum payments were made, and that the rate remained constant during each year. The table does not necessarily indicate how the index or your payments will change in the future. Year Index Margin *1 APR *2 Min. Mo. Payment 2000 9.500% 1.00% 10.500% $100.00 2001 6.750% 1.00% 7.750% $100.00 2002 4.750% 1.00% 5.750% $100.00 2003 4.250% 1.00% 5.250% $100.00 2004 4.250% 1.00% 5.250% $100.00 2005 6.000% 1.00% 7.000% $100.00 2006 8.250% 1.00% 9.250% $100.00 2007 8.250% 1.00% 9.250% $100.00 2008 5.000% 1.00% 6.000% $100.00 2009 4.000% 1.00% 5.000% $100.00 2010 3.250% 1.00% 4.250% $100.00 2011 3.250% 1.00% 4.250% $100.00 2012 3.250% 1.00% 4.250% $100.00 2013 3.250% 1.00% 4.250% $100.00 2014 3.250% 1.00% 4.250% $100.00 *1. Recently used margin *2. APR means ANNUAL PERCENTAGE RATE
IMPORTANT TERMS of our HOME EQUITY LINE OF CREDIT 1% Payment / 10 year draw / 20 year repayment / 24 Month Fixed Rate / Prime + 2.5% 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 security interest in 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, 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 your home has fallen below the amount of its appraised value at this time; Your financial circumstances have changed to such an extent that we believe you will be unable to repay the loan; You are in default of any material provision of this Agreement. Credit Union membership is a material provision of the Agreement; We cannot impose the ANNUAL PERCENTAGE RATE provided for by the terms of this Agreement due to government action to the extent that the priority of our security interest is less than 120% of the credit line; A regulatory agency has notified us that continued advances would be an unsafe or unsound practice; The maximum rate allowed under the plan, if any, has been reached; The initial agreement permits us to make certain changes to the terms of the agreement at a specified time or upon the occurrence of specified events. Minimum Payment Requirements: You can obtain advances of credit for 10 years (the "draw period ). During the draw period, payments will be due monthly. Your minimum monthly payment will be determined by the following method: The amount of your minimum monthly payment will be 1.00% of the outstanding principal balance. On the 15 th of each month, an analysis is completed. If advances have been made during the previous 30 days, your payment will be calculated based on the balance including advances taken up to the 15 th. In no event will your minimum payment be less than $50.00, unless the amount that you owe is less, in which case that will be the minimum payment. After the draw period ends, you will no longer be able to obtain credit advances and must pay the outstanding balance on your account (the repayment period ). The length of the repayment period is 20 year(s). During the repayment period, payments will be due monthly. You minimum monthly payment will equal 1.00% of the outstanding principal balance.
The minimum monthly payments may not be sufficient to fully repay the principal on your line by the end of the repayment period. If they are not, you will then be required to pay the entire balance in a single payment. Minimum Payment Example: If you took an advance of $10,000 and took no other credit advance, and make only the minimum payments (calculated at 8.500%, an ANNUAL PERCENTAGE RATE recently in effect) you would have minimum monthly payments of $100.00. During that time, you would make 175 monthly payments. Fees & Charges: To open and maintain a line of credit: You may be required to pay certain fees to third parties to open a line, referred to as closing costs. Subordination Fee - Ask us for the Subordination Fee in effect. If you ask, we will provide you with an itemization of the fees you will have to pay. The mortgage recording tax and title insurance fee shall be based on the maximum amount of the credit line available to you, whether advanced or not. Property Insurance: You must carry insurance on the property that is secured by this loan. Early Closure Fee: If the HELOC is closed or refinanced within three years of origination an Early Closure Fee may be charged. This Fee would be charged if the loan were obtained with a no fee offer. The Early Closure Fee would then be payable to NICU as reimbursement for loan origination costs that were covered by NICU. See the following table for the current early closure fee structure; HELOC Limit Early Closure Fee $100,000 $500 >$100,000 -$250,000 $1,000 >$250,000. $1500 Minimum Draw: No minimum advance amounts are required. Tax Deductibility: You should consult a tax advisor regarding the deductibility of interest and charges for the line. Fixed-Variable-Rate Feature: The Initial ANNUAL PERCENTAGE RATE may be discounted (at a fixed rate) and shall remain in remain in effect for the first 24 months which means it is not based on the Index plus margin as used for later adjustments. After the initial discounted rate period, the line has a variablerate feature, and the ANNUAL PERCENTAGE RATE (corresponding to the periodic rate) or payment can change as a result. The APR excludes costs other than interest. The ANNUAL PERCENTAGE RATE is based on the value of an index. The index is the Major Bank Prime Rate as published in The Wall Street Journal. To determine the Annual Percentage Rate that will apply to your credit line we add a margin as stated in your credit agreement to the value of the index. Ask us for the current index value, discounted rate, margin and Annual Percentage Rate. After you open a credit line, rate information will be provided on periodic statements that we send you. The initial discounted start rate is an introductory rate offered only once per member. Rate Changes: The Initial ANNUAL PERCENTAGE RATE shall remain in effect for the first 24 months of this loan. Thereafter, it can change quarterly. The rate cannot increase or decrease by more than 4 percentage point(s) in any one year period. The maximum ANNUAL PERCENTAGE RATE that can apply is 12.0% and the minimum ANNUAL PERCENTAGE RATE is 4%.
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 12% under this program would be $100.00. This Annual Percentage Rate could be reached upon the first interest rate Change Date Historical Example: The following table shows how the Annual Percentage Rate and the minimum payments for a single $10,000 credit advance have changed based on changes in the index over the past 15 years. The index values are from July of each year. The table assumes that no additional credit advances were taken, that only the minimum payments were made, and that the rate remained constant during each year. The table does not necessarily indicate how the index or your payments will change in the future. Year Index Margin *1 APR *2 Min. Mo. Payment 2000 9.500% 2.50% 12.000% $100.00 2001 6.750% 2.50% 9.250% $100.00 2002 4.750% 2.50% 7.250% $100.00 2003 4.250% 2.50% 6.750% $100.00 2004 4.250% 2.50% 6.750% $100.00 2005 6.000% 2.50% 8.500% $100.00 2006 8.250% 2.50% 10.750% $100.00 2007 8.250% 2.50% 10.750% $100.00 2008 5.000% 2.50% 7.500% $100.00 2009 4.000% 2.50% 6.500% $100.00 2010 3.250% 2.50% 5.750% $100.00 2011 3.250% 2.50% 5.750% $100.00 2012 3.250% 2.50% 5.750% $100.00 2013 3.250% 2.50% 5.750% $100.00 2014 3.250% 2.50% 5.750% $100.00 *1. Recently used margin *2. APR means ANNUAL PERCENTAGE RATE