Home Equity Line of Credit Disclosure

When Your Home is On the Line

Siouxland Federal Credit Union
3000 Plaza DriveSouth Sioux City, NE 68776

This disclosure contains important information about our Home Equity Line of Credit.
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 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.
Possible Actions: Under certain circumstances, we can:
  1. terminate your line of credit, require you to pay us the entire balance in one payment, and charge you certain fees;
  2. refuse to make additional extensions of credit; and
  3. reduce your credit limit.
We can terminate you account, require you to pay us the entire outstanding balance in one payment and charge you certain fees if:
  1. you engage in fraud or material misrepresentation in connection with the line of credit;
  2. you do not meet the repayment terms; or
  3. your action or inaction adversely affects the collateral or our rights in the collateral
We can refuse to make additional extensions of credit or reduce your credit limit if:
  1. you engage in fraud or material misrepresentation in connection with the line of credit;
  2. you do not meet the repayment terms; or
  3. your action or inaction adversely affects the collateral or our rights in the collateral;
  4. the value of the dwelling securing the line of credit declines significantly below its appraised value for purposes of the line of credit;
  5. we reasonably believe you will not be able to meet the repayment requirements due to a material change in your financial circumstances;
  6. you are in default of a material obligation of the agreement;
  7. 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;
  8. a regulatory agency has notified us that continued advances would constitute an unsafe and unsound business practice; or
  9. the maximum annual percentage rate is reached.
Minimum Payment Requirements: You can obtain credit advances until the maturity date. During this period, payments will be due monthly. Your minimum monthly payment will equal the greater of 1.500% of the outstanding principal balance or $75.00 whichever is greater.
The minimum monthly payments will not be sufficient to fully repay the principal balance that is outstanding on your line of credit. At the end of the maturity you will be required to pay the entire balance outstanding in a single “balloon” payment.
Minimum Payment Example: If you took a single $10,000.00 credit advance, made only the minimum monthly payment and the ANNUAL PERCENTAGE RATE was 9.75% during the 10 year term of your loan, you would make 119 payments of $81.25 and a final payment of $10,081.25.
Fees and Charges: You must pay certain fees to third parties such as appraisers, credit reporting firms, and government agencies. These fees generally total $200.00. If you ask, we will provide you with an itemization of the fees you will have to pay to third parties.
You must carry insurance, acceptable to the Credit Union, on the property that secures this line of credit.
Refundability of Fees: If you decide not to enter into this plan within three days of receiving this disclosure and the Home Equity booklet, you are entitled to a refund of any fee you may have already paid.
Minimum Draw Requirements: The minimum credit advance that you can receive is $1,000.
Tax Deductibility: You should consult a tax advisor regarding the deductibility of interest and charges for the plan.
Variable Rate Feature: This line of credit has a variable rate feature and the annual percentage rate (corresponding to the periodic rate) and the minimum monthly 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 weekly average yield on United States Treasury securities adjusted to a constant maturity of 1 year, as published in the Wall Street Journal. To determine percentage rate that will apply to your account, we add a margin to the value of the Index. Ask us for the current index value, margin and annual percentage rate. After you open a line of credit, rate information will be provided on periodic statements that we send you.
Rate changes: The annual percentage rate can change annually, the rate cannot increase or decrease more than 2.000% in a one year period. The maximum ANNUAL PERCENTAGE RATE that can apply during the term of the line of credit is 6.000% above the initial rate.
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 $180.16.
This is not a commitment to make a loan.
The consumer should make or otherwise retain a copy of these disclosures.
I have read the disclosures and wish to proceed to the loan application.