Home Equity Loan Disclosure

Home Equity Loans

Adjustable Rate Mortgage (ARM) Loan Disclosure

This disclosure describes the features of the adjustable-rate mortgage (ARM) program you are considering. Information on other ARM programs is available upon request. Ask us for current rate information.

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED

Your interest rate will be discounted by .25% if you agree to have your payments made by automatic transfer from your NIH FCU checking or savings account. If the automatic transfer from your NIHFCU checking or savings account is cancelled or terminated for any reason, your interest rate will immediately increase by .25%. An increase in the interest rate will result in an increase in your APR and in the amount of your scheduled payments.

HOW YOUR INTEREST RATE CAN CHANGE

Your interest rate can change on the day that automatic transfer of your payment from a NIH FCU checking or savings account is cancelled or terminated.

If you elect to have your payments made via automatic transfer from your NIH FCU checking or savings account your interest rate will be reduced by .25%. Your interest rate will immediately increase by .25% if you have signed up for automatic payment from your NIH FCU checking or savings account and you subsequently cancel or terminate such service, or in the event we are unable to transfer the necessary payment amount from your checking or savings account for any reason. An increase in the interest rate will cause a like increase in the amount of your payments.

HOW YOUR PAYMENT CAN CHANGE

Changes in the interest rate will cause changes in the amount of your payments as of the first monthly payment due date following the month during which the automatic transfer is cancelled or terminated.

You will be notified in writing at least 15 but not more than 120 calendar days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount and loan balance.