IMPORTANT TERMS of our HOME EQUITY LINE OF CREDIT
(Equity Express
SM
Account or Equity Express
SM
Total Line of Credit Account)
Retention of Information: This disclosure contains important information about our Equity Express Account Home Equity Line of Credit.
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 prior to opening your account. 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 have 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: We can terminate your account, require you to pay us the entire outstanding balance in one payment before the draw or
repayment periods end, and charge you certain fees if: 1) there is fraud or material misrepresentation by you in connection with your line;
2) you fail to make a payment when due or otherwise meet the repayment terms of your line for any outstanding balance; or 3) any action
or inaction by you adversely affects our security interest for your line or any right we have in the collateral (your home). Examples of acts by
you which may adversely affect our rights in the collateral including, but are not limited to, the following: if you transfer title to or sell the
collateral in a manner not permitted by the mortgage; if you fail to maintain or acquire insurance on your home; if you commit waste or
other destructive use or fail to maintain the collateral such that it adversely affects the value of the collateral; if you fail to pay property taxes
or assessments resulting in the filing of a lien senior to that of the mortgage; if you die; if the collateral is taken by condemnation: or if a
prior mortgage holder forecloses. We may suspend further advances or “freeze” your line or reduce your credit limit during the draw
period if: 1) the value of any dwelling that is part of the collateral declines significantly below its appraised value for purposes of your line; 2)
we reasonably believe that you will be unable to fulfill your repayment obligations under your line because of material change in your
financial circumstances; 3) you are in default of any material obligations under the agreement; 4) we are prevented by government action
from imposing the annual percentage rate provided for in the agreement; 5) the priority of the lien of the mortgage is adversely affected by
government action to the extent that the value of our security is less than 120% of your balance under your line; or, 6) we are notified by
our regulatory agency that continued advances constitute an unsafe or unsound practice. The initial agreement permits us to make certain
changes to the terms of the agreement at specified times or upon the occurrence of specified events.
Eligibility: Depending on your creditworthiness, you may qualify for one of two Equity Express Products, (i) Equity Express or (ii) Equity
Express Total Line of Credit. The differences in Payment structures are described here below.
Draw Period: You can obtain credit advances ten years from the date of your agreement unless your rights to obtain advances of credit
are otherwise suspended or canceled. During the draw period, payments will be due monthly. Your minimum monthly payment during the
draw period is described below. After the draw period ends, you will no longer be able to obtain credit advances and must repay the
outstanding balance as stated in the “Repayment Period” section of this disclosure.
Repayment Period: You will no longer be able to obtain credit advances ten years from the date of your agreement. The length of the
repayment period will be twenty years and begins immediately after the draw period expires. During the repayment period, payments will
be due monthly. Your minimum monthly payment during the repayment period is described below.
Equity Express:
Minimum Payment Requirement Draw Period: Your minimum monthly payments will be equal to the sum of the
finance charges, any credit insurance and any other charges that apply, including amounts past due, and late charges.
The minimum payment will not fully repay the principal that is outstanding on your line. You will then be required to pay
the entire balance during the repayment period.
Minimum Payment Requirement Repayment Period: Your minimum monthly payments will be equal to 1/240
th
of the
outstanding principal balance, determined as of the first day of the repayment period, plus all accrued finance charges,
any credit insurance and any other charges that apply, including amounts past due, and late charges.
Minimum Payment Example: If you made only the minimum payments and took no other credit advances, it would take
thirty years to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE OF 4.50%. Because the line
of credit has a draw period of ten years plus a repayment period of twenty years, if your line was not renewed or
extended and you make the minimum payments, you would make 120 monthly payments of $34.52 to $38.22 during the
draw period, followed by 240 monthly principal plus interest payments ranging from $41.82 to $79.17. An increase in the
ANNUAL PERCENTAGE RATE may increase the amount of your monthly payment. Monthly payments are
approximations and vary due to minor variations in rounding.
Equity Express Total Line of Credit:
Minimum Payment Requirement Draw Period: Your minimum monthly payments will be equal to the sum of 0.25% of
your outstanding balance plus the finance charges, any credit insurance and any other charges that apply, including
amounts past due, and late charges. The minimum payment will not fully repay the principal that is outstanding on your line. You
will then be required to pay the entire balance during the repayment period.
Minimum Payment Requirement Repayment Period: Your minimum monthly payments will be equal to 1/240
th
of the
outstanding principal balance, determined as of the first day of the repayment period, plus all accrued finance charges,
any credit insurance and any other charges that apply, including amounts past due, and late charges.
Minimum Payment Example: If you made only the minimum payments and took no other credit advances, it would take
thirty years to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE OF 4.50%. Because the line
of credit has a draw period of ten years plus a repayment period of twenty years, if your line was not renewed or extended and
you make the minimum payments, you would make 120 monthly payments of $46.40 to $62.50 during the draw period, followed
by 240 monthly principal and interest payments of about $30.97 to $58.63. An increase in the ANNUAL PERCENTAGE RATE
may increase the amount of your monthly payment. Monthly payments are approximations and vary due to minor variations in
rounding.
Fees and Charges: To open and maintain a line of credit, you must pay certain fees to third parties. These fees generally total
between $10.00 and $3,000.00 (American Savings Bank may waive any or all of these fees). If you ask, we will give you an itemization of
the fees you will have to pay to third parties. In addition to any third party fees, you must also pay us the following: (a) hazard/fire/flood
insurance premiums for the property if you do not obtain that insurance yourself and we elect at our option to obtain it for you as provided
in the mortgage; (b) charges for taxes, lease rent, assessments and other advances made at our option to protect the property as
provided in the mortgage; (c) a fee paid to each public official for the recordation of a release of mortgage of twenty-six to seventy-seven
dollars ($26.00 - $77.00) (there may be more than one public official); (d) Equity Express Card related charges such as statement
reconciliation, research, replacement of lost, stolen, or damaged cards, ATM fees and Visa International Service Assessment Fees; (e) if
your line amount is more than $25,000.00, a fee of five hundred ($500.00) will be charged if you request we close it within three (3) years
from the Date of Agreement. We will not assess this fee if: [i] your Credit Limit is $25,000.00 or less, [ii] you sell the Collateral to an
unrelated/unaffiliated third- party, or [iii] you payoff your Agreement with proceeds from a real estate secured loan from us; (f) a fee for
notary service ($100.00 - $250.00 per signer); (g) a credit report fee ($2.48 per applicant); (h) a recording of mortgage fee ($36.00 for
land court/$41.00 for regular system/$77.00 for double-system); (i) a condo processing fee ($100.00); (j) a trust review and trust
mortgage document preparation fee ($130.89 - $366.49); (k) a property valuation fee ($14.50) and property condition report fee
($60.00 - $185.00). If a valuation is not available, the current tax assessed value and property inspection report or an appraisal may
be used. For home equity credit line requests over $250,000.00, in some situations an appraisal may be required. Appraisal cost
may vary from $500.00 - $1,500.00 depending on the property; (l) flood certification fee ($9.00); (m) mortgage/document preparation fee
($104.71); (n) title insurance fees based on the amount of the line of credit requested ($125.00 - $3,600.00); (o) Escrow services fee
($125.00 - $1,500.00); (p) Subordination fee ($300.00). Late Payment fee: 5% of the unpaid portion of the minimum amount due. The
maximum late charge is $30.00 per late payment. Returned Item Fee [due to insufficient funds] ($20.00). Replacement Card Fee ($20.00
per card). Expedited Card Fee ($50.00 per request). Returned Mail Fee ($5.00 per month).
Escrow Payments: It is unlikely that we will require escrow payments. We may require escrow payments if they are not already collected
by another lender. We have the right to collect 1/12
th
of the yearly taxes, assessments, mortgage insurance, insurance and lease rent for
your property at the same time we collect your monthly payment. Collection of escrow payments allows us to make sure that these items
are paid and do not become liens on your property. We do not pay you interest on the amount of money in escrow. If you fail to make your
escrow payment, you will be in default and we can require immediate repayment of all money you owe us.