The Lending Outlet - FIXED RATE
HOME EQUITY CREDIT ACCOUNT DISCLOSURE

This disclosure contains important information about your Home Equity Account (Account).  You should read it carefully and keep a copy for your records.

 

1.                    Availability of Terms.  All of the terms described below are subject to change. If any of these terms change (other than the ANNUAL PERCENTAGE RATE) and you decide, as a result, to not enter into an agreement with us, you are entitled to a refund of any fees that you paid in connection with your application.

 

2.                    Security Interest. We will take a deed of trust on your home.  You could lose your home if you do not meet the obligations in your agreement with us.

 

3.                    Possible Actions. We may take the following actions with respect to your Account under the circumstances listed below:

 

      a.     Termination and Acceleration.  We may terminate your Account and require you to pay us the entire outstanding balance immediately, and charge you certain fees if any of the following happen:

 

(1)                    You engage in any fraud or material misrepresentation in connection with your Account.  For example, if there are false statements or omissions on your application or financial statements.

(2)                    You do not meet the repayment terms of the Account.

(3)                    Your action or inaction adversely affects the collateral or our rights in the collateral.  For example, if you fail to:  maintain insurance, pay taxes, transfer title to or sell the collateral, prevent the foreclosure of any items, or waste of the collateral.

 

b.        Suspension of Credit. We may refuse to make additional advances on your Account during any period in which the following exist or occur:

 

(1)                    Any of the circumstances listed in a., above.

(2)                    The value of your dwelling securing the Account declines significantly below its appraised value for purposes of the Account.

(3)                    We reasonably believe that you will not be able to meet the repayment requirements of the Account due to a material change in your financial circumstances.

(4)                    You are in default under any material obligation of your Account.

 

All of your obligations under the Account (Agreement and Deed of Trust) are material to maintaining this Account.  The categories of your obligations are set forth in the following paragraphs of these Agreements.

 

      Home Equity Credit Account Agreement.   1. Promise to Pay; 2. Line of Credit Account; 4. Loan Payments; 6. Security Requirements; 10. Conditions Under Which Other Charges May Be Imposed; 11. Joint Liability; 12. Possible Credit Union Actions; and 15. Credit Information/Financial Statements. 

     

      Deed of Trust. 1. Payments and Performance; 2. Possession and Maintenance of Property; 3. Taxes and Liens;  4. Property Damage Insurance; 5. Expenditures by Credit Union; 7. Condemnation; 10.1. Consent by Credit Union; 10.2. Effect of Consent; 11. Security Agreement; Financing Statements; 14. Actions Upon Termination; 14.5. Attorneys Fees and Expenses; 16.2 Unit Ownership Power of Attorney; 16.3. Annual Reports; 16.5. Joint and Several Liability;  16.8 Waiver of Homestead Exemption; and 17.3. No Modifications.

 

(1)                    The maximum ANNUAL PERCENTAGE RATE under your Account is reached.

(2)                    Any 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.

(3)                    We have been notified by government agency that continued advances would constitute an unsafe and unsound practice.

 

c.        Change in Terms. The Agreement permits us to make certain changes to the terms of the Account at specified times or upon the occurrence of specified events.

 

4.     Minimum Payment Requirements.

 

a.        Home Equity Loans. For Home Equity Loans under your Account, after your initial advance, you must repay the outstanding balance over the repayment period.  The repayment period will be up to a maximum of one hundred eighty (180) months.  During the repayment period, you may request further loan advances up to the amount of your original balance subject to our credit and security verification. During the repayment period, payments will be due monthly.

b.        RV Residence Loan. For RV Residence Loans under your Account, after your initial loan advance, you must repay the outstanding balance over the repayment period. The repayment period will be up to a maximum of one hundred eighty (180) months, depending on the loan amount.  During the repayment period, you may request further loan advances up to the amount of your original balance subject to our credit and security verification.  During the repayment period, payments will be due monthly.

c.        Homeowner's Vehicle Loan. For Homeowner's Vehicle Loans under your Account, after your initial advance, you must repay the outstanding balance over the repayment period.  The repayment period may be up to a maximum of eighty-four (84) months, depending on the loan amount.  During the repayment period, you may request further loan advances up to the amount of your original balance subject to our credit and security verification.  During the repayment period, payments will be due monthly.

 

5.     Minimum Payment Example.

 

a.        Home Equity Loans.  If you took a single $10,000 advance at an ANNUAL PERCENTAGE RATE of 7.75% (a recent fixed rate we have offered for loans with a maximum loan-to-value of 80%, automatic payments, and a maximum 15 year repayment period.) and made only the minimum monthly payments, it would take 180 months to pay off your account.  During that period you would make 179 monthly payments of $94.21 and one estimated final payment of $92.44.

b.        RV Residence Loans. If you took a single $10,000 advance at an ANNUAL PERCENTAGE RATE of 7.99% (a recent fixed rate we have offered with automatic payments) and made only the minimum monthly payments, it would take 48 months to pay off your Account.  During that period you would make 47 monthly payments of $244.11 and one estimated final payment of $243.94.

c.        Homeowner's Vehicle Loans. If you took a single $10,000 advance at an APR of 4.90% (a recent fixed rate we have offered with automatic payments), and made only the minimum monthly payments, it would take 60 months to pay off your Account.  During that period, you would make 59 monthly payments of $188.27 and one estimated final payment of $188.14.

 

6. Fees and Charges. In order to open and maintain the Account, you must pay certain fees and charges. 

 

a.     Credit Union Fees. The following fees must be paid to us:

A $200.00 fee for Home Equity Loans.  

b.        Third Party Fees. You must carry insurance on the property that secures this Account.  If we require an appraisal, you must pay the appraisal fee of approximately $300.00.  You must pay the title issuance fee of $63.00 and/or the title transfer fee of $30.00 if applicable.

c.        Prepayment Fee. For Home Equity Loans you will pay a fee of $300.00 if your loan balance is paid in full, for any reason, before the first anniversary date of your initial advance.

 

7.     Loan Amount Requirements. For Home Equity Loans, the minimum initial advance is $7,500.00 and the

maximum is $200,000.00.

 

8.     Tax Deductibility. You should consult a tax advisor regarding the deductibility of interest and charges under the

plan.

 

9.     Annual Percentage Rate. The Home Equity, RV Residence, and Homeowner's Vehicle Loan programs have a

fixed rate.  The range of ANNUAL PERCENTAGE RATES that we have offered recently is set forth below.  The rate for which a Borrower may qualify may depend on the Borrower's collateral, loan‑to‑value percentage, credit score, past credit performance, loan amount, and discount for automatic payment transfer. The ANNUAL PERCENTAGE RATE includes only interest and not other costs.  Ask us about our current fixed rates.                          

 

ANNUAL PERCENTAGE RATES

 

a.               Home Equity Loan   5  year repayment                 5.75%  - 11.25%

  7 year repayment                  5.99%  - 11.50%

10  year repayment                 6.25%  - 11.75%

15  year repayment                 7.75%  - 14.25%

b.               RV Residence Loan 7.99%  - 18.50%

c.               Homeowner's Vehicle Loan                                                                4.90% - 15.49%