Stark Federal Credit Union

If you are applying for a Home Equity Loan, please carefully read the following:

Home Equity Line of Credit Disclosures

This disclosure contains important information about our Home Equity Line of Credit Plan. You should read it carefully.

Members should retain a copy of all disclosures.
Members must submit a completed application to obtain the advertised rates.
Borrowers may receive a refund of all charges if interest rates change and borrower decides to decline the loan.
Stark Federal Credit Union will take a security interest in your home.
A $200 fee will be assessed a home equity loan if it is closed within three years of origination to recover processing expenses.
Lines of credit have a draw period of 5 years and a repayment period of 10 years.
There is a minimum monthly payment of 1 1/2% of the balance owing with a minimum of $100.
The APR is 4.5% per annum.
After the initial disbursement, there is a transaction fee of $10.00 for each disbursement of $1,000 or more and $25.00 for each disbursement under $1,000.
Maximum rate that may be charged is 18%.
Variable Rate Feature: This plan has a variable rate feature and the annual percentage rate (corresponding to the periodic rate) and the minimum payment may change as a result. The annual percentage rate includes only interest and no other costs.

The annual percentage rate is based on the value of an index. The index is the Prime Rate published in the Wall Street Journal, with a floor rate of 4.5% APR. When a range of rates has been published, the highest rate is used. We will use the most recent index value available to us as of 10 days before the date of any annual percentage rate adjustment.

To determine the annual percentage rate that will apply to your account, we add a margin to the value of the index. We then round up to the next .25%. Ask us for the current index value, margin and annual percentage rate. After you open a plan, rate information will be provided on periodic statements that we send you.
The annual percentage rate can change quarterly on the first day of January, April, July, and October. There is no limit on the amount by which the annual percentage rate can change during any one year period. The maximum ANNUAL PERCENTAGE RATE can apply is 18%. However, under no circumstances will your ANNUAL PERCENTAGE RATE go below 4.5% at any time during the term of the Plan.