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IMPORTANT FACTS ABOUT OUR HOME EQUITY LINE OF CREDIT
Retention of Information: This disclosure contains important information about our Home Equity Line of Credit ("Account"). 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 (collateral). You could lose your home if you do not meet the obligations in your Agreement with us.
Possible Actions: We can terminate your Account, and require you to pay us the entire outstanding balance in one payment if: you engage in fraud or material misrepresentation in connection with the Account; or, you do not meet the repayment terms; or, your action or inaction adversely affects the collateral or our rights in the collateral; and/or, federal law dealing with credit extended by us to you specifically requires that as a condition of your Account the credit shall become due and payable on demand.
We can refuse to make additional extensions of credit or reduce your credit limit if: the value of the dwelling securing the Account declines significantly below its appraised value for purposes of the Account; or, we reasonably believe you will not be able to meet the repayment requirements due to a material change in your financial circumstances; or, you are in default of a material obligation in the Agreement; or, 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; or, a regulatory agency has notified us that continued advances would constitute an unsafe and unsound practice; and/or, the maximum annual percentage rate is reached.
Minimum Payment Requirements: You can obtain advances of credit for 5 years (the "Draw Period"). During the Draw Period, payments will be due monthly. Your minimum periodic payment will be equal to 0.556% of the outstanding principal balance plus accrued interest as of the closing date of each billing statement.
After the Draw Period ends, you will no longer be able to obtain credit advances and must pay the outstanding balance over 10 years (the "Repayment Period"). Your minimum monthly payment during the Repayment Period will be determined based on the outstanding balance of your Account at the beginning of the Repayment Period and using the interest rate in effect at the beginning of the Repayment Period to calculate equal monthly payments which will fully amortize your Account.
Minimum Payment Example: If you made only the minimum monthly payments and took no other credit advances, it would take 15.000 years to pay off a balance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 5.500%. During the Draw Period, you would make 60 monthly payments varying between $101.43 and $73.00. During the Repayment Period you would make 119 monthly payments of $77.67. This would be followed by one final payment of $77.61.
Fees and Charges: To open and maintain your Account, you must carry insurance on the property securing your Account.
| Recording fee (Maximum Fee) | $126.50 ** |
| Closing fee outside of a GCF Branch (If applicable) | $150.00 ** |
| * Payable at application ** Payable at closing |
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If you tell us you have decided not to enter into the Account within three days of receiving this Disclosure and the brochure "When Your Home is On The Line: What You Should Know About Home Equity Lines of Credit" in person, or within six days after the day we mail them to you, as the case might be, any fees or charges you might have already paid will be refunded.
Tax Deductibility: You should consult a tax advisor regarding the deductibility of interest and charges for the Account.
Other Products: If you ask, we will provide you with information on our other available home equity Accounts.
Minimum Transaction Requirements: The minimum ongoing credit advance for this Account is $250.00.
Variable-Rate Feature: The Account has a variable rate feature. 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 Wall Street Journal published Prime Rate (if published in a range, the highest number in the range will be used) and is published in the Wall Street Journal. To determine the annual percentage rate that will apply to your Account, we add or subtract a margin from the value of the index. Ask us for the current index value, margin and annual percentage rate. After you open an Account, rate information will be provided on periodic statements that we furnish to you.
Rate Changes: The Annual Percentage Rate can change monthly. The ANNUAL PERCENTAGE RATE cannot increase by more than 8.000 percentage points above the initial rate. Apart from this rate cap, there is no limit on the amount by which the rate can change in any one-year period, except that under no circumstances will the rate ever beb less than 4.000% per annum. You should inquire about the rate limitations that are currently available.
Maximum Rate and Payment Example: If the ANNUAL PERCENTAGE RATE during the Draw Period equaled the 10.500% maximum and you had an outstanding balance of $10,000.00, your minimum payment would be $88.00. The maximum Annual Percentage Rate could be reached the first time your Annual Percentage Rate changes, unless your initial rate is equal to the maximum, in which case it would be reached immediately.
If you had an outstanding balance of $10,000.00 at the beginning of the Repayment Period, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 13.500% would be $152.27. This Annual Percentage Rate could be reached at the beginning of the Repayment Period.
Historical Example: The following table shows how the Annual Percentage Rate and the minimum payments for a single $10,000.00 credit advance would have changed based on changes in the index over the past 15 years. The index values are from the last business day of July of each year. While only one payment amount per year is shown, payments would have varied during each year of the Draw Period
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. It does not necessarily indicate how the index or your payments will change in the future.
| Year | Index | Margin* | ANNUAL PERCENTAGE RATE |
Minimum Monthly Payment |
| 1995 | 8.750% | 2.000% | 10.750% | $145.18 |
| 1996 | 8.250% | 2.000% | 10.250% | $131.89 |
| 1997 | 8.500% | 2.000% | 10.500% | $125.18 |
| 1998 | 8.500% | 2.000% | 10.500% | $117.08 |
| 1999 | 8.000% | 2.000% |
10.000% | $106.32 |
| 2000 | 9.500% | 2.000% | 11.500% | $100.62 |
| 2001 | 6.750% | 2.000% | 8.750% | $90.54 |
| 2002 | 4.750% | 2.000% | 6.760% | $84.24 |
| 2003 | 4.000% | 2.000% | 6.000% | $82.20 |
| 2004 | 4.250% | 2.000% | 6.250% | $82.78 |
| 2005 | 6.250% | 2.000% | 8.250% | $86.82 |
| 2006 | 8.250% | 2.000% | 10.250% | $90.19 |
| 2007 | 8.250% | 2.000% | 10.200% | $90.18 |
| 2008 | 5.000% | 2.000% | 7.000% | $87.29 |
| 2009 | 3.250% | 2.000% | 5.250% | $86.47 |
*This is a margin we have used recently.