Home Equity Line of Credit Loan
Use the equity in your home to cover any needed expenses.
The dollar amount you pay for money borrowed is called a finance charge. The finance charge begins on the date of each advance.
This plan has a variable-rate feature, and the annual percentage rate (corresponding to the periodic rate) and minimum payment can change as a result. The annual percentage rate includes only interest and no other costs. The annual percentage rate is based on the value of an index.
The index is the Prime Interest Rate.
The index is published in the money rates section of the Wall Street Journal. The annual percentage rate is the index.
The annual percentage rate can change monthly on the first day of the month following change in the index value. The maximum ANNUAL PERCENTAGE RATE that can apply is 18.00%. Under no circumstances will your ANNUAL PERCENTAGE RATE go below 3.00% during the term of the Plan.
You must also carry insurance on the property that secures this Plan. If the property is located in a Special Flood Hazard area, you will be required to obtain flood insurance.
If your payment is 15 or more days past due, you will be charged $15.00.
If you have a returned check, you will charged $15.00.
We figure the finance charge on your account by applying the periodic rate to the “daily balance” of your account for each day in the billing cycle. To get the “daily balance” we take the beginning balance of your account each day, add any new advances, and subtract any unpaid finance charges and any payments or credits. This gives us the daily balance.
We can terminate your line, require you to pay us the entire outstanding balance in one payment 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 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 the 120 percent of the credit line. A regulatory agency has notified us that continued advances would constitute an unsafe and unsound practice. A maximum annual percentage rate is reached.
You can obtain credit advances for ten (10) years. This period is called the “draw period”. At our option, we may renew or extend the draw period. After the draw period ends, the repayment period will begin and you will no longer be able to obtain advances. The length of the repayment period is determined by the amount of your outstanding balance after your last advance. The payoff period will always be shorter of the payoff period for your outstanding balance or the time remaining to the maturity date. Periodically, we will review the effect interest rate increases have had on your account. If the annual percentage rate has increased so much that your payment is no longer sufficient to repay the balance within the payoff period payment plus any past due amount plus any amount in excess of your credit limit and all other charges. You agree to always pay the minimum amount due on or before the due date.
The minimum amount of the first credit advance and all advances thereafter is $250.00.
You should consult a tax advisor regarding the deductibility of interest and charges for the line.
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.
YOUR BILLING RIGHTS: KEEP THIS NOTICE FOR FUTURE USE This notice contains important information about your rights and our responsibilities under the Fair Credit Billing Act.
NOTIFY US IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR BILL