Home Equity VISA Gold Rates and Account Disclosure

To help you understand the terms and conditions of our home equity lines of credit, you should read this disclosure before you continue on to the next step in the application process. If you have questions, please ask us. You may continue to the next step when you reach the bottom of this page.

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Current rates for , (effective since 7/11/2008)

The account terms and charges stated above are accurate as of the effective date.  Please contact the Credit Union at PO Box 70225, Eugene, OR 97401-0145 for any change in the card terms or disclosure.

Truth in Lending Disclosure:

This disclosure contains important information about your Home Equity VISA Credit Account.  You should read it carefully and keep a copy for your records.

1. Availability of Terms.
   All of the terms described below are subject to change. If any of these terms change (other than the ANNUAL PERCENTAGE RATE ) and you decide, as a result, to not enter into an agreement with us, you are entitled to a refund of any fees that you paid in connection with your application.
    
2. Security Interest.
   We will take a deed of trust on your home. You could lose your home if you do not meet the obligations in your agreement with us.
    
3. Possible Actions.
   We may take the following actions with respect to your Account under the circumstances listed below:
    
   1. Termination and Acceleration.
      We may terminate your Account and require you to pay us the entire outstanding balance immediately, and charge you certain fees if any of the following happen:
       
      1. You engage in any fraud or material misrepresentation in connection with your Account. For example, if there are false statements or omissions on your application or financial statements.
         
      2. You do not meet the repayment terms of the Account.
      3. Your action or inaction adversely affects the collateral or our rights in the collateral. For example, if you fail to: maintain insurance, pay taxes, transfer title to or sell the collateral, prevent the foreclosure of any items, or waste of the collateral.
          
   2. Suspension of Credit/Reduction of Credit Limit.
      We may refuse to make additional advances on your line or reduce your credit limit during any period in which the following exist or occur:
       
      1. Any of the circumstances listed in a., above.
      2. The value of your dwelling securing the Account declines significantly below its appraised value for purposes of the Account.
      3. We reasonably believe that you will not be able to meet the repayment requirements of the Account due to a material change in your financial circumstances.
      4. You are in default under any material obligation of your Account. All of your obligations under the Account (Agreement and Deed of Trust) are material to maintaining this Account. The categories of your obligations are set forth in the following paragraphs of these Agreements.
          
         • Home Equity Credit Account Agreement.
           1. Payment; 2. Credit Line Access; 3. Security; 4. Property Maintenance/Insurance; 8. Other Costs and Charges; 11. Possible Actions; and 13. Credit Information/Financial Statements.
            
         • Deed of Trust.
           1. Payments and Performance; 2. Possession and Maintenance of Property; 3. Taxes and Liens; 4. Property Damage Insurance; 5. Expenditures by Credit Union; 7. Condemnation; 10.1. Consent by Credit Union; 10.2. Effect of Consent; 11. Security Agreement; Financing Statements; 14. Actions Upon Termination; 14.5. Attorneys Fees and Expenses; 16.2 Unit Ownership Power of Attorney; 16.3. Annual Reports; 16.5. Joint and Several Liability; 16.8 Waiver of Homestead Exemption; and 17.3. No Modifications.
            
      5. The maximum ANNUAL PERCENTAGE RATE under your Account is reached.
      6. Any 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.
      7. We have been notified by government agency that continued advances would constitute an unsafe and unsound practice.
          
   3. Change in Terms .
      The Agreement permits us to make certain changes to the terms of the Account at specified times or upon the occurrence of specified events.
       
4. Minimum Payment Requirements.
   You can obtain credit advances for five (5) years (the "draw period"). On expiration of the original draw period or any subsequent draw period, the draw period will be renewed for an additional five (5) years unless the borrower is notified in writing 90 days prior to the expiration date.  During the draw period, payments will be due monthly. Your minimum monthly payment will be equal to the greater of 1.50% of your outstanding balance as of the most recent advance or $125.00 (1.50% of the outstanding balance as of the most recent advance or $20.00 for Junior Lien Accounts,) whichever is greater.  After the draw period ends, you will no longer be able to obtain credit advances and must repay the outstanding balance (the "repayment period"). The length of the repayment period will depend on the outstanding balance. During the repayment period, payments will be due monthly. Your minimum monthly payment will be equal to 1.50% of the outstanding balance as of the most recent advance or $125.00, whichever is greater.
    
5. Minimum Payment Example.
    
   1. First or Second Lien. If you took a single $10,000.00 advance at an ANNUAL PERCENTAGE RATE of 5.25% (the most recent index plus margin shown in the historical table) and made only the minimum monthly payments, it would take 79 months to pay off your account. During that period you would make 78 monthly payments of $150.00 and one payment of $148.95.
       
   2. Junior Lien.  If you took a single $10,000 advance at an ANNUAL PERCENTAGE RATE of 9.90% (the most recent index plus margin shown in the historical table) and made only the minimum monthly payments, it would take 98 months to pay off your account. During that period you would make 97 monthly payments of $150.00 and one payment of $28.22.
       
6. Fees and Charges.
   In order to open and maintain the line, you must pay certain fees and charges.
    
   1. Credit Union Fees. The following fees must be paid to us:
       
      1. Property Insurance: If you fail to maintain satisfactory insurance on the property, we will purchase insurance and (in addition to the cost of the insurance) charge a fee of $50.00.
          
      2. ATM Access Fee: Transactions at any NWCU or CO-OP ATM are free. Withdrawals and balance inquiries at foreign ATMs will cost $1.50 each. In addition, surcharge fees assessed by another financial institution may be charged to your Accounts. Foreign ATMs are Automated Teller Machines not owned by Northwest Community Credit Union or ATMs not affiliated with the CO-OP Network.
          
7. Third Party Fees.
   You must pay certain fees to third parties such as appraisers, credit reporting firms, and government agencies. You must carry insurance on the property that secures this Account. The amount of these fees depends on the amount of the loan advance. For a equity line of credit under $10,000.00, these fees generally total $325.00. For a $25,001.00 or more equity line of credit, these fees generally total $650.00. For example, on a $10,000.00 equity line of credit loan the following estimated fees must be paid to third parties:
    
   1. Appraisal Fee: $350.00 ($25,001. 00 or more)
   2. Title Insurance: $100.00 for a $10,000 equity line of credit; (amounts will increase for lines of credit/equity loans over $50,000)
   3. Recording Fee: $50.00
   4. Reconveyance Fee: $65.00
   5. Flood Zone Determination: $15.00
   6. Tax Tracking $50.00 
       
8. Minimum Draw Requirement.
   There is no minimum amount for purchases or cash advances on your Visa Gold card.  There is a minimum draw requirement of $250.00 for advances on lines of credit taken in person at a Credit Union office.
    
9. Tax Deductibility. You should consult a tax adviser regarding the deductibility of interest and charges under the plan.
    
10. ANNUAL PERCENTAGE RATE.
     
    1. Variable Rate.
       Your Account has a variable rate feature and the ANNUAL PERCENTAGE RATE (corresponding to the periodic rate) may change as a result. The ANNUAL PERCENTAGE RATE includes only interest and not other costs. An increase or decrease in the ANNUAL PERCENTAGE RATE will affect the amount of the monthly payments for your Account.
        
    2. Determination of Rate.
       The ANNUAL PERCENTAGE RATE is based on the value of an index. The index is an average of the auction high rates on 26-week Treasury Bills for the quarter ending 30 days prior to January 1, April, July 1, and October 1.  The index is published by the U.S. Treasury Department and quarterly averages are computed and available at the Credit Union.   To determine the ANNUAL PERCENTAGE RATE that will apply to your account, we take the value of the index, round up to the nearest one-quarter percent, and add a margin.  Ask us for the current index value, margin, discount, and   ANNUAL PERCENTAGE RATE.  After you open an account, rate information will be provided on periodic statements that we will send you.
        
    3. Rate Changes. The ANNUAL PERCENTAGE RATE can change quarterly on the first day of each calendar quarter (January 1, April 1, July 1 and October 1). The maximum rate change per calendar year is 2 percentage points and the maximum ANNUAL PERCENTAGE RATE that can apply over the life of the loan is 6 percentage points over the initial rate. 
        
11. Maximum Rate and Payment Examples.
    If you had an outstanding balance of $10,000.00 at the beginning of your Account, the minimum monthly payment at the current maximum ANNUAL PERCENTAGE RATE of 11.25% (15.90% for junior lien accounts) would be $150.00. This ANNUAL PERCENTAGE RATE could be reached during the third year of the draw period. If you had an outstanding balance of $10,000.00 at the beginning of the repayment period, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 11.25% (15.90% for junior lien accounts) would be $150.00. This ANNUAL PERCENTAGE RATE could be reached during the third year of the repayment period.
     
12. Historical Example.
    The following tables show how the ANNUAL PERCENTAGE RATE and the minimum monthly payments for a single $10,000.00 credit advance on equity lines of credit under this Account would have changed based on changes in the index over the last 15 years. The index values are calculated as of the first day of January each year. While only one payment amount per year is shown, payments would have varied slightly during each year. The table assumes that no additional credit advances were taken, that only the minimum payment was made each month, and that the rate remained constant during each year. It does not necessarily indicate how the index or your payments would change in the future.
    

* This is a margin we have used recently for regular home equity accounts.

** This rate reflects our 2% per calendar year rate cap.

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