Featured: Loans
Heartland Area
FCU
6111 N. 72nd Street
Omaha, NE 68134-2157
Toll Free 1-866-314-2328
Phone (402) 571-8444
Fax (402) 571-0462
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Home > Loans > HELOC Disclosures |
Home Equity Early Disclosures
Important Terms of Our Home Equity Line of Credit
This disclosure contains important information about our Home Equity Line of Credit Plan.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 obligation in your agreement with us.
POSSIBLE ACTIONS: We can terminate your lien, require you to pay us the entire outstanding balance in one payment, and charge you certain fees, if (1) you engage in any fraud or material misrepresentation in connection with the plan; (2) you do not meet the repayment terms of this plan, or (3) your action or inaction adversely affects the collateral of our rights in the collateral.
We can refuse to make additional extensions of the credit or reduce your credit limit if (1) any reason above exists; (2) the value of the dwelling securing the lien declines significantly below the appraised value for the purpose of the line; (3) we reasonably believe that you will be able to meet the repayment requirements due to a material change in your financial circumstances; (4) you are in default of a material obligation of the agreement; (5) government action prevents us from imposing the annual percentage rate provided for in the agreement; (6) the priority of our security interest is adversely affected by government action in the extent that the value of the security interest is less than 120 percent of the credit line; (7) a regulatory agency has notified us that continued advances would constitute an unsafe and unsound business practice, or (8) the maximum annual percentage rate is reached.
MINIMUM PAYMENT REQUIREMENTS: You can obtain credit advances for 5 years. This period is called the "draw period." After the draw period ends the repayment period will begin. The length of the repayment period will depend on the balance at the time of the last advance you obtain before the draw period ends. You will be required to make monthly payments during both the draw period and repayment periods. At the time you obtain a credit advance a payoff period of 180 monthly payments will be used to calculate your payment.
The payroll period will always be the shorter of the payoff period for your outstanding balance of the time remaining to the maturity date. Your payment will be set to repay the balance after the advance, at the current annual percentage rate, within the payoff period. Your payment will remain the same unless you obtain another credit advance. Your payment may also change if the annual percentage rate increases or decreases. Each time the annual percentage rate changes, we will adjust your payment to repay the balance within the original payoff period. Your payment will include any amounts past due and any amount by which you have exceeded your credit limit, and all other charges. Your payment will never be less than the smaller of $10,000, or the full amount that you owe.
MINIMUM PAYMENT EXAMPLE: If you made only the minimum monthly payment and took no other credit advances it would take 12 years 7 months to pay off a credit advance of $10,000 at an ANNUAL PERCENTAGE RATE of 7%. During that period, you would make 151 payments of $100.00.
FEES AND CHARGES: In order to open, use and maintain a line of credit plan, you must pay the following fees to us:
Loan Processing Fee: $50.00 (Due at closing)
You must pay certain fees to third parties to open the plan. These fees generally total between $125.00 and $800.00. If you ask, we will provide you with an itemization of the fees you will have to pay third parties.
PROPERTY INSURANCE: You must carry insurance on the property that secures this plan. If the property is located in a Special Flood Hazard Area we will require you to obtain flood insurance if it is available.
REFUNDABILITY OF FEES: If you decide not to enter into this plan within three business days of receiving this disclosure and the home equity brochure, you are entitled to a refund of any fee you may have already paid.
TRANSACTION REQUIREMENTS: The maximum number of advances you may obtain per quarter is 1. The minimum credit advance that you can receive is $5,000.00 for the first advance and $500.00 for each subsequent advance.
TAX DEDUCTIBILITY: You should consult a tax advisor regarding the deductibility of the interest and charges for the plan.
VARIABLE RATE FEATURE: This plan has a variable rate feature and the annual percentage rate (corresponding to the periodic rate) and the minimum payment may 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 Prime Rate published in the Monthly Rates column of the Wall Street Journal. When a range of rates has been published the highest rate will be used. We will use the most recent index value available to us as of 10 days before the date of any annual percentage rate adjustment.
To determine the annual percentage rate that will apply to your account, we add a margin to the value of the Index. The initial annual percentage rate is "discounted" - it is not based on the index and margin used for later rate adjustments. The initial rate will be in effect for 3 months. Ask us for the current index value, margin, discounts and the annual percentage rate. After you open a plan, rate information will be provided on periodic statements that we send you.
RATE CHANGES: The annual percentage rate can change semi-annually on the first day of January and July. The rate cannot increase or decrease more than 1 percentage point at each adjustment. The initial discount rate will not be taken into account in applying this periodic rate cap. The maximum ANNUAL PERCENTAGE RATE that can apply is 18% or the maximum permitted by law, whichever is less. However under no circumstances will your ANNUAL PERCENTAGE RATE go below 7% at anytime during the term of the plan.
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 $162.00. This annual percentage rate could be reached at the time of the 61st payment.
Your savings are Federally insured up to $250,000
by the National Credit Union Administration,
a U.S. Government Agency.
We do business in accordance with the
Federal Fair Housing Law and the
Equal Credit Opportunity Act.
