Home Equity Rate Assumptions

Fixed Rate Home Equity Loan

Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.

The information provided assumes the purpose of the loan is to obtain a fixed rate 2nd mortgage loan on a single family home. It also assumes that the loan amount (including all liens) to property value or CLTV ratio is 80% or less with a loan amount of more than $20,000.00. The property is located within INB’s Central Illinois market and the loan closing will take place at an INB branch. Credit score is assumed to be 660 or better.

Closing fees:

INB does not charge standard fees in conjunction with a fixed rate 2^nd mortgage loan.

Interest Rate and Payment Example – Fixed Rate 2^nd Mortgage Loans

**Sample payments are based on a Conventional $100,000 loan and include only principal and interest for this loan. This amount does not include any amounts for prior mortgage liens or amounts for which escrow may be required such as taxes, insurance, homeowner’s association dues, etc. Your total payment obligation will be greater than amounts listed below. These are rates that we have used recently and are subject to change. You should check with your lender for our most current rates.

Home Equity Line of Credit

The information provided assumes the purpose of the loan is to obtain a Home Equity Line of Credit on a single family home. It also assumes that the loan amount (including all liens) to property value or CLTV ratio is 80% or less with a loan amount of more than $20,000.00. The property is located within INB’s Central Illinois market and the loan closing will take place at an INB branch. Credit score is assumed to be 660 or better.

Fees and Charges:

In order to open and maintain an account, you must pay certain fees and charges:

Lender fees:

The following fees must be paid to us:

Third Party Fees:

You may incur certain fees to third parties such as appraisers, credit reporting firms, and government agencies. These third-party fees generally total between $0.00 and $1,221.10. Upon request, we will provide you with an itemization of the fees that have been paid to third parties. INB does not charge these fees except on default or termination within 36 months of origination.

Minimum Payment Requirements:

You can obtain advances of credit during the following period: until the “Maturity Date” (the “Draw Period”). Your Regular Payment will equal the amount of your accrued FINANCE CHARGES. You will make 119 of these payments. You will then be required to pay the entire balance owing in a single balloon payment. Your payments will be due monthly.

Your “Minimum Payment” will be the Regular Payment, plus any amount past due and all other charges or fees. The Minimum Payment will not repay the principal that is outstanding on your Credit Line and your final payment will be a single balloon payment.

A change in the ANNUAL PERCENTAGE RATE may increase the amount of your Regular Payment.

Balloon Payment:

Your Credit Line Account is payable in full upon maturity in a single balloon payment. You must pay the entire outstanding principal, interest and any other charges then due. Unless otherwise required by applicable law, we are under no obligation to refinance the balloon payment at that time.

Minimum Payment Example:

If you made only the minimum payment and took no other credit advances, it would take 10 years to pay off a credit advance of $10,000 at an ANNUAL PERCENTAGE RATE of 8.25%. During that period, you would make 119 monthly interest payments of $70.07 and one final payment of $10,070.07. This payment example includes only accrued FINANCE CHARGES.

Maximum Rate and Payment Example:

If you had an outstanding balance of $10,000 during the draw period, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 28.25% would be $239.93. This annual percentage rate could be reached during the first month of the draw period. This payment example includes only accrued FINANCE CHARGES.

Variable Rate Feature:

The Plan has a variable-rate feature. The ANNUAL PERCENTAGE RATE (corresponding to the periodic rate), the amount of the final payment, and the minimum payment can change as a result. The ANNUAL PERCENTAGE RATE does not include costs other than interest.

The Index:

The annual percentage rate is based on the value of an index (referred to in this disclosure as the “Index”). The index is the Prime Rate of interest listed in the Money Rates Table of the Wall Street Journal. Information about the Index is available or published in the Money Rates Table of the Wall Street Journal. We will use the most recent Index value available to us as of the first business day after the Home Equity statement prints for any annual percentage rate adjustment. If the Index is no longer available, we will choose a new Index and margin. The new Index will have an historical movement substantially similar to the original Index, and the new Index and margin will result in an annual percentage rate that is substantially similar to the rate in effect at the time the original Index becomes available.

ANNUAL PERCENTAGE RATE:

To determine the Periodic Rate that will apply to your account, we add a margin to the value of the index, then divide the value by the number of days in a year (daily). To obtain the ANNUAL PERCENTAGE RATE we multiply the Periodic Rate by the number of days in a year (daily). This result is the ANNUAL PERCENTAGE RATE. The ANNUAL PERCENTAGE RATE includes only interest and no other charges. The amount that your ANNUAL PERCENTAGE RATE may change also may be affected by the lifetime annual percentage rate limits as discussed below.

Please ask us for the current Index value, margin, discount and annual percentage rate. After you open a credit line, rate information will be provided on periodic statements that we send you.

Frequency of ANNUAL PERCENTAGE RATE adjustments.

Your ANNUAL PERCENTAGE RATE can change monthly. There is no limit on the amount by which the annual percentage rate can change during any one-year period. However, under no circumstances will your ANNUAL PERCENTAGE RATE exceed 28.25% per annum or, go below 5.000% per annum at any time during the term of the plan, nor will the Periodic Rate or corresponding ANNUAL PERCENTAGE RATE exceed the maximum rate allowed by applicable law.