Home Equity Early Disclosure

Important Terms of Your Home Equity Line of Credit

Retention of Information This disclosure contains important information about your 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 that you pay 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 credit line, require you to pay us the entire outstanding balance in one payment, and charge you certain fees if: (i) You engage in fraud or material misrepresentation in connection with the line; (ii) You do not meet the repayment terms; (iii) 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: (i) Any of the reasons mentioned above exist; (ii) The value of the dwelling securing the line declines significantly below its appraised value for purposes of this line; (iii) We reasonably believe you will not be able to meet the repayment requirements due to a material change in your financial circumstances; (iv) You are in default of a material obligation in the agreement; (v) 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; (vi) A regulatory agency has notified us that continued advances would constitute an unsafe and unsound practice; (vii) The maximum ANNUAL PERCENTAGE RATE is reached. The initial agreement permits us to make certain changes to the terms of the agreement at specified times or upon the occurrence of specified events.

MINIMUM PAYMENT REQUIREMENTS: You can obtain credit advances for 10 years. This period is called the "draw period". At our option, we may renew or extend the draw period. The length of the repayment period will be 15 years. You will be required to make payments during the draw and repayment periods. Your payment will be $1.50/$100 or portion of $100 if you elect insurance; $1.30/$100 if you do not elect credit insurance, of the outstanding balance at the time you obtain an advance of $100.00, whichever is greater. If your outstanding balance is in excess of an even $100.00, the amount will be rounded to the next even $100.00 for payment calculation. Your payment will include any amounts past due and any amount by which you have exceeded your credit limit, and all other charges. We will recalculate your payment each time you obtain an advance.

If the interest rate increases, you will be required to make more payments of the same amount until the end of the repayment period. If the ANNUAL PERCENTAGE RATE exceeds 13.5% for longer than one full monthly rate change cycle, the factor will increase to $1.95/$100 (with credit insurance election) or $1.70/$100 (without credit insurance). If the ANNUAL PERCENTAGE RATE decreases to less than 13.5% the factor will revert to the original figure. These events could change your payment at times other than after subsequent advances. If this happens we will provide notice to you.

MINIMUM PAYMENT EXAMPLE: If made only the minimum monthly payment and took no other credit advances, it would take you 7 years 6 months to pay off a credit advance of $10,000 at an ANNUAL PERCENTAGE RATE of 4.25%. During that period, you would make 89 payments of $130.00 and one (1) final payment of $124.77.

FEES AND CHARGES: To open and maintain a line of credit, you must pay the following fees to us: Annual Fee of $ N/A. Unless otherwise noted, all fees will be paid at closing. You also must pay certain fees to third parties. These fees generally total between $0 and $2500. If you ask, we will give you an itemization of the fees you will have to pay to third parties.

PROPERTY INSURANCE: You must carry insurance on the property that secures the line. If the property is located in a Special Flood Hazard Area we will require you to obtain flood insurance if it is available. You may select the insurance company of your choice, provided the company and coverage meet our requirements.

TRANSACTION REQUIREMENTS: The minimum Initial Advance is $ N/A. Subsequently, the minimum advance thereafter is $ N/A.

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

OTHER PRODUCTS: If you ask, we will provide you with information on our other available home equity lines.

VARIABLE RATE INFORMATION: This Agreement has a variable annual percentage rate. The ANNUAL PERCENTAGE RATE and the amount and/or number of Minimum Payments may change as a result. The ANNUAL PERCENTAGE RATE includes only interest and no other costs. The Initial ANNUAL PERCENTAGE RATE may be "discounted." Any discounted rate is not based on the index and margin used for later rate adjustments. The discounted initial rate will be in effect for the first N/A months your credit line is open.

The ANNUAL PERCENTAGE RATE is based on the value of an index, and we may add a margin to the value of the Index. The "Index" is Prime Rate as published in the Wall Street Journal. 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 will send you.

RATE CHANGES: The annual percentage rate can change on the last day of each month. Each change in the ANNUAL PERCENTAGE RATE (and the related Daily Periodic Rate) will take effect without prior notice and will apply to both new Advances and your Account Balance.

MAXIMUM RATE AND PAYMENT EXAMPLES: If you had an outstanding balance of $10,000, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 18% would be $170. This annual percentage rate could be reached at the time of the 1st payment.

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 January 1 of each year. While only one payment amount per year is shown, payments during the Draw and Repayment Periods 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.

* This ANNUAL PERCENTAGE RATE reflects a 4.000% floor.

What you should know about home equity lines of credit

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