This disclosure contains important information about the First Advantage 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.

You must carry insurance on the property that secures this plan.

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:

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

 

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

image The value of the dwelling securing the line declines significantly below its appraised value for the purposes of the line;
image We reasonably believe you will not be able to meet the repayment requirements due to a material change in your financial circumstances;
image You are in default of a material obligation in the Agreement;
image Government action prevents us from imposing the Annual Percentage Rate provided for or impairs our mortgage such that the value of the mortgage is less than 120 percent of the credit line;
image A regulatory agency has notified us that continued advances would constitute an unsafe and unsound practice; 
image The maximum Annual Percentage Rate is reached; or
image If this is a joint account and one of the joint owners requests Bank may not permit any further advances on the Account.

 

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 advances of credit for 10 years. During this period, payments will be due monthly. Your minimum monthly payment will equal 2% of the outstanding balance on your line or $50, whichever is greater. The minimum monthly payment may not fully repay the principal that is outstanding on your line. In this case, you will be required to pay the entire balance in a single “balloon” payment unless we agree to renew your line for another time period.

Minimum Payment Examples:

80% Loan-To-Value
If you made only the minimum monthly payments and took no other credit advances, it would take 10 years to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 4.75%. During that period, you make 120 monthly payments varying between $200.81 and $50.00, followed by a balloon payment of $1,012.96.

90% Loan-To-Value
If you made only the minimum monthly payments and took no other credit advances, it would take 10 years to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 5.75%. During that period, you make 120 monthly payments varying between $200.93 and $50.00, followed by a balloon payment of $1,283.29.

Minimum Draw Requirements: There is no initial minimum credit advance required, however, each advance must be for a minimum of $100.00.

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 prime rate on the date of rate change as published in the “Money Rates” column of the Wall Street Journal. To determine the Annual Percentage Rate that will apply to your line, we add a margin to the value of the index.

The initial rate will be in effect for six months from the date of the Agreement.

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 six months after the date of the Agreement and annually thereafter. The maximum ANNUAL PERCENTAGE RATE that can apply is 18%. Apart from this rate “cap”, there is no limit on the amount by which the rate can change during any one year.

Maximum Rate and Payment Examples: If you had an outstanding balance of $10,000, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 18% would be $203.06.

This Annual Percentage Rate could be reached six months after the date of the Agreement.

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 last 15 years. The index values are those in effect as of January 1 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.

80% Loan-To-Value

Year Index Margin* Annual
Percentage
Rate
Minimum
Monthly
Payment
As of January 1 % % % ($)
2003 4.25 1.0 5.25** 200.98
2004 4.00 1.0 5.00 166.95
2005 5.25 1.0 6.25 137.14
2006 7.25 1.0 8.25 114.73
2007 8.25 1.0 9.25 97.83
2008 7.25 1.0 8.25 84.11
2009 3.25 1.0 4.25 71.42
2010 3.25 1.0 4.25 58.47
2011 3.25 1.0 4.25 50.00***
2012 3.25 1.0 4.25 -0-
2013 3.25 1.0 4.25 -0-
2014 3.25 1.0 4.25 -0-
2015 3.25 1.0 4.25 -0-
2016 3.50 1.0 4.50 -0-
2017 3.75 1.0 4.75 -0-

*This is a margin we have used recently.
** This Annual Percentage Rate reflects an initial 6 month rate.
***The final balloon payment is $1,343.87

90% Loan-To-Value

Year Index Margin* Annual
Percentage
Rate
Minimum
Monthly
Payment
As of January 1 % % % ($)
2003 4.25 2.0 6.25** 201.06
2004 4.00 2.0 6.00 167.88
2005 5.25 2.0 7.25 140.01
2006 7.25 2.0 9.25 118.30
2007 8.25 2.0 10.25 101.88
2008 7.25 2.0 9.25 88.46
2009 3.25 2.0 5.25 75.86
2010 3.25 2.0 5.25 62.73
2011 3.25 2.0 5.25 51.87
2012 3.25 2.0 5.25 50.00***
2013 3.25 2.0 5.25 -0-
2014 3.25 2.0 5.25 -0-
2015 3.25 2.0 5.25 -0-
2016 3.50 2.0 5.50 -0-
2017 3.75 2.0 5.75 -0-

*This is a margin we have used recently.
** This Annual Percentage Rate reflects an initial 6 month rate.
***The final balloon payment is $1,601.26

 

image  CONTINUE TO ACCOUNT APPLICATION

 

MENU OF DISCLOSURES & AGREEMENTS:

arrow Electronic Disclosure Consent
arrow Bill Payment and e-Bill Terms and Conditions
arrow Statement Service Agreement and Disclosure
arrow Statement Browser Requirements
arrow Internet User Agreement
arrow Online and Mobile Banking Agreement
arrow Deposit Account Agreement
arrow Truth In Savings
arrow Customer Identification Program (CIP)
arrow Funds Availability Policy
arrow Equal Housing Lender
arrow Check Card/Direct Banking Cash Card Cardholder Agreement
arrow Electronic Funds Transfer Agreement And Disclosure
arrow What You Should Know About Home Equity Lines of Credit
arrow Important terms of the First Advantage Home Equity Line of Credit

 

Harvey County's Oldest Bank... Established 1873