Establishment of Line of Credit. Jordan Credit Union, in its discretion may grant a secured real property home equity line of credit. The amount of the line of credit may be changed, reduced, modified or revoke by the credit union if the loan becomes delinquent, account abuse, death of a borrower and/or as permitted by law.
Advances Against Line of Credit. This is a fifteen year loan plan. The draw and repayment periods will run concurrently for the first ten years. Advances against the line of credit can be made during the first ten years. Advance requests must meet the credit union’s terms and conditions at the time of the request. At the end of the draw period, if there is a remaining balance, the payment will be recalculated for the loan to pay off within the remaining five-years.
Agreement to Repay. The interest shall be computed at a daily periodic rate which is 1/365th of the applicable variable ANNUAL PERCENTAGE RATE. Each minimum monthly payment shall be due on the date set forth in the latest Advance Request Statement. Interest shall accrue at the applicable variable ANNUAL PERCENTAGE RATE before and after judgement. Payments shall be made at Jordan Credit Union.
If the Line of Credit is terminated or closed within the first three years (due to refinance or sale of property, etc.), the member will be responsible for paying the full amount of closing costs back to the credit union.
Variable Rate Provisions. The ANNUAL PERCENTAGE RATE shall be determined by adding Jordan Credit Union’s real property rate adjustment (margin) to the prime rate as disclosed in the Wall Street Journal on the last day of each quarter (March 31, June 30, September 30, December 31). The ANNUAL PERCENTAGE RATE shall be disclosed each quarter on the periodic statement and will be effective beginning the first day of each quarter. The rate shall not increase or decrease more than two percent (2%) each quarter, nor eight percent (8%) annually. The ANNUAL PERCENTAGE RATE shall not exceed fifteen percent (15%) or be less than four percent (4%). The minimum monthly payment will not increase; however, an increase in the ANNUAL PERCENTAGE RATE (corresponding to the periodic rate) will increase the number of payments required to repay the loan.
Minimum Monthly Payment. Advances of credit are granted during the first ten years of this loan agreement; the term of the repayment period runs the full ten years. During the entire period payments will be due monthly. Minimum monthly payment will be 1.25% of the high outstanding balance since my last advance, but not less than $130 (or the outstanding balance if less than $130 plus the finance charges that have accrued on the outstanding balance).
Tax Deductibility. A tax advisor should be consulted regarding the deductibility of interest and charges for this line of credit.
*Valid through 4/30/2023. $20,000 minimum loan amount. Other fees may include, but are not limited to, the following: Appraisal $450, CC&R for homes with an HOA or in a PUD $100-$175. All dollar figures are estimates and may vary. Additional fees may be required, especially in case of condo. If the Line of Credit is terminated or closed within the first three years (due to refinance, sale of property, etc.), the member will be responsible for paying the full amount of origination fees back to the credit union. Membership Eligibility Required. Equal Opportunity Housing Lender. NMLS #402456
**The introductory 4.49% APR is for the first six months after loan closing. After six months, the introductory rate will convert back to the Variable Annual Percentage Rate (APR) based on the Prime Rate, and will range from 5.5% APR to 15.00% APR based on credit worthiness. Some restrictions may apply. APR (Annual Percentage Rate) as low as 8.00% as of 3/23/23 and may increase up to 2% per quarter, not to exceed 15%. Variable Rate. Rate may change without notice.