1) Special Fixed Rate: The Special Rate/Annual Percentage Rate (APR) is fixed for 12 months, and is applicable for all advances taken during the 12 month period. The balance and all subsequent advances, after the 12 month fixed rate period, will accrue at the Standard Variable Rate2 for the remaining term. APR may be increased after consummation of loan. It will not exceed 16% APR, or applicable state law, or below 5.50% APR. DEPOSIT ACCOUNT REQUIRED. An interest bearing checking account is required to be open prior to or equal to the date of the HELOC Agreement.
2) Standard Variable Rate: After the 12 month Special Fixed Rate1 period the Standard Variable Rate2 will apply for the remaining 72 months. The balance and all subsequent advances will accrue at the variable annual percentage rate (APR). The APR is variable and is based on the Wall Street Journal Prime Rate. Information about the Index is published in the Wall Street Journal. We will use the most recent Index value available to us as of 30 days prior to any APR adjustment. APR may be increased after consummation of loan. It will not exceed 16% APR, or applicable state law, or below 5.50% APR.
Tax implications: Consult your tax advisor regarding deductibility of interest.
Low monthly payments: You can obtain advances of credit during the seven year “Draw Period” (77 Months). Your Regular Payment will equal the amount of your accrued FINANCE CHARGES. You will make 83 monthly payments. Your “Minimum Payment” will be the Regular Payment, plus any amount past due and all other charges. An increase in the ANNUAL PERCENTAGE RATE may increase the amount of your Regular Payment. If you make only the Regular Payments, you may not have repaid any of the principal balance by the end of this payment stream. The Credit Line Account is payable in full upon maturity in a single balloon payment. You must pay the entire outstanding principal, interest and any other charges that are due. Unless otherwise required by applicable law, we are under no obligation to refinance the balloon payment at that time. You may be required to make payments out of other assets you own or find a lender, which may be us, willing to lend you the money. If you refinance the balloon payment, you may have to pay some or all of the closing costs normally associated with a new credit line account, even if you obtain refinancing from us.
Low fees: There is no annual fee or advance fee. For new loans of $10,000 or more, Exchange Bank may require a Loan Origination Fee of $80 and Flood Determination Fee of $15 paid in cash. You may be required to pay certain fees to third parties such as appraisers, credit reporting firms, and government agencies. These third party fees generally total between $0.00 and $1,246.00.