What You Should Know About Home Equity Lines - Great Lakes Credit Union
:KDW \RX VKRXOG NQRZ DERXW KRPH HTXLW\ OLQHV RI FUHGLW What you should know about home equitylines of credit-DQXDU\ January2014
This booklet was initially prepared by the Board of Governors of the Federal Reserve System. TheConsumer Financial Protection Bureau (CFPB) has made technical updates to the booklet toreflect new mortgage rules under Title XIV of the Dodd-Frank Wall Street Reform andConsumer Protection Act (Dodd-Frank Act). A larger update of this booklet is planned in thefuture to reflect other changes under the Dodd-Frank Act and to align with other CFPBresources and tools for consumers as part of the CFPB’s broader mission to educate consumers.Consumers are encouraged to visit the CPFB’s website at consumerfinance.gov/owning-ahome to access interactive tools and resources for mortgage shoppers, which are expected to beavailable beginning in 2014. : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 WHATYOU SHOULD KNOW ABOUT HOME EQUITYLINES OF CREDIT(67 H
7DEOH RI FRQWHQWV Table of contentsTable of contents.31. Introduction .41.1Home equity plan checklist . 42. What is a home equity line of credit? . 62.1 What should you look for when shopping for a plan? . 72.2 Costs of establishing and maintaining a home equity line . 82.3 How will you repay your home equity plan? . 92.4 Line of credit vs. traditional second mortgage loans . 102.5 What if the lender freezes or reduces your line of credit? . 11Appendix A: .12Defined terms . 12Appendix B: .15More information .15Appendix C: .16Contact information . 16 : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
1. ,QWURGXFWLRQ 1. IntroductionIf you are in the market for credit, a home equity plan is one of several options that might beright for you. Before making a decision, however, you should weigh carefully the costs of a homeequity line against the benefits. Shop for the credit terms that best meet your borrowing needswithout posing undue financial risks. And remember, failure to repay the amounts you’veborrowed, plus interest, could mean the loss of your home.1.1 RPH HTXLW\ SODQ FKHFNOLVW 1.1 Home equity plan checklistAsk your lender to help you fill out this worksheet.Basic features for comparisonPlan A%DVLF IHDWXUHV IRU FRPSDULVRQ Plan B3ODQ Fixed annual percentage rate)L[HG DQQXDO SHUFHQWDJH UDWH %Variable annual percentage rate9DULDEOH DQQXDO SHUFHQWDJH UDWH %Index used and current value ,QGH[ XVHG DQG FXUUHQW YDOXH Amount of margin PRXQW RI PDUJLQ % 3ODQ % %%% Frequency of rate adjustments )UHTXHQF\ RI UDWH DGMXVWPHQWV Amount/length of discount (if any) PRXQW OHQJWK RI GLVFRXQW LI DQ\ Interest rate cap and floor ,QWHUHVW UDWH FDS DQG IORRU Length of plan/HQJWK RI SODQ Draw period'UDZ SHULRG : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
Basic features for comparison(continued)%DVLF IHDWXUHV IRU FRPSDULVRQ FRQWLQXHG Plan APlan B3ODQ 3ODQ % Application fee SSOLFDWLRQ IHH Up-front charges, including points8S IURQW FKDUJHV LQFOXGLQJ SRLQWV Closing costs&ORVLQJ FRVWV During the draw period'XULQJ WKH GUDZ SHULRG Interest and principal payments,QWHUHVW DQG SULQFLSDO SD\PHQWV Interest-only payments,QWHUHVW RQO\ SD\PHQWV Fully amortizing payments)XOO\ DPRUWL]LQJ SD\PHQWV When the draw period ends:KHQ WKH GUDZ SHULRG HQGV Repayment Period5HSD\PHQW SHULRG Initial fees,QLWLDO IHHV Appraisal fee SSUDLVDO IHH Repayment terms5HSD\PHQW WHUPV Balloon payment?%DOORRQ SD\PHQW" Renewal available?5HQHZDO DYDLODEOH" Refinancing of balance by lender?5HILQDQFLQJ RI EDODQFH E\ OHQGHU" : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
2. :KDW LV D KRPH HTXLW\ OLQH RI FUHGLW" 2. What is a home equity line of credit?A home equity line of credit is a form of revolving credit in which your home serves as collateral.Because a home often is a consumer’s most valuable asset, many homeowners use home equitycredit lines only for major items, such as education, home improvements, or medical bills, andchoose not to use them for day-to-day expenses.With a home equity line, you will be approved for a specific amount of credit. Many lenders setthe credit limit on a home equity line by taking a percentage (say, 75 percent) of the home’sappraised value and subtracting from that the balance owed on the existing mortgage. Forexample:Appraised value of home SSUDLVHG YDOXH RI KRPH Percentage3HUFHQWDJH Percentage of appraised value3HUFHQWDJH RI DSSUDLVHG YDOXH Less balance owed on mortgage/HVV EDODQFH RZHG RQ PRUWJDJH potential line of creditPotential line of credit 100,000 x 75%[ 75,000- 40,000 35,000 35,000In determining your actual credit limit, the lender will also consider your ability to repay theloan (principal and interest) by looking at your income, debts, and other financial obligations aswell as your credit history.Many home equity plans set a fixed period during which you can borrow money, such as 10years. At the end of this “draw period,” you may be allowed to renew the credit line. If your plan : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
does not allow renewals, you will not be able to borrow additional money once the period hasended. Some plans may call for payment in full of any outstanding balance at the end of theperiod. Others may allow repayment over a fixed period (the “repayment period”), for example,10 years.Once approved for a home equity line of credit, you will most likely be able to borrow up to yourcredit limit whenever you want. Typically, you will use special checks to draw on your line.Under some plans, borrowers can use a credit card or other means to draw on the line.There may be other limitations on how you use the line. Some plans may require you to borrowa minimum amount each time you draw on the line (for example, 300) or keep a minimumamount outstanding. Some plans may also require that you take an initial advance when the lineis set up.2.1:KDW VKRXOG \RX ORRN IRU ZKHQ VKRSSLQJ IRU D SODQ" 2.1 What should you look for whenshopping for a plan?If you decide to apply for a home equity line of credit, look for the plan that best meets yourparticular needs. Read the credit agreement carefully, and examine the terms and conditions ofvarious plans, including the annual percentage rate (APR) and the costs of establishing the plan.Remember, though, that the APR for a home equity line is based on the interest rate alone andwill not reflect closing costs and other fees and charges, so you’ll need to compare these costs, aswell as the APRs, among lenders.2.1.1Variable9DULDEOH LQWHUHVW UDWHV interest rates2.1.1Home equity lines of credit typically involve variable rather than fixed interest rates. Thevariable rate must be based on a publicly available index (such as the prime rate published insome major daily newspapers or a U.S. Treasury bill rate). In such cases, the interest rate you payfor the line of credit will change, mirroring changes in the value of the index. Most lenders citethe interest rate you will pay as the value of the index at a particular time, plus a “margin,” suchas 2 percentage points. Because the cost of borrowing is tied directly to the value of the index, itis important to find out which index is used, how often the value of the index changes, and howhigh it has risen in the past. It is also important to note the amount of the margin. : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
Lenders sometimes offer a temporarily discounted interest rate for home equity lines—an“introductory” rate that is unusually low for a short period, such as six months.Variable-rate plans secured by a dwelling must, by law, have a ceiling (or cap) on how much yourinterest rate may increase over the life of the plan. Some variable-rate plans limit how much yourpayment may increase and how low your interest rate may fall if the index drops.Some lenders allow you to convert from a variable interest rate to a fixed rate during the life ofthe plan, or let you convert all or a portion of your line to a fixed-term installment loan.2.2&RVWV RI HVWDEOLVKLQJ DQG PDLQWDLQLQJ D KRPH HTXLW\ OLQH 2.2 Costs of establishing andmaintaining a home equity lineMany of the costs of setting up a home equity line of credit are similar to those you pay whenyou get a mortgage. For example: A fee for a property appraisal to estimate the value of your home; An application fee, which may not be refunded if you are turned down for credit; Up-front charges, such as one or more “points” (one point equals 1 percent of the creditlimit); and Closing costs, including fees for attorneys, title search, mortgage preparation and filing,property and title insurance, and taxes.In addition, you may be subject to certain fees during the plan period, such as annualmembership or maintenance fees and a transaction fee every time you draw on the credit line.You could find yourself paying hundreds of dollars to establish the plan. And if you were to drawonly a small amount against your credit line, those initial charges would substantially increasethe cost of the funds borrowed. On the other hand, because the lender’s risk is lower than forother forms of credit, as your home serves as collateral, annual percentage rates for home equitylines are generally lower than rates for other types of credit. The interest you save could offsetthe costs of establishing and maintaining the line. Moreover, some lenders waive some or all ofthe closing costs. : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
2.3 RZ ZLOO \RX UHSD\ \RXU KRPH HTXLW\ SODQ" 2.3 How will you repay your home equityplan?Before entering into a plan, consider how you will pay back the money you borrow. Some plansset a minimum monthly payment that includes a portion of the principal (the amount youborrow) plus accrued interest. But, unlike with typical installment loan agreements, the portionof your payment that goes toward principal may not be enough to repay the principal by the endof the term. Other plans may allow payment of only the interest during the life of the plan, whichmeans that you pay nothing toward the principal. If you borrow 10,000, you will owe thatamount when the payment plan ends.Regardless of the minimum required payment on your home equity line, you may choose to paymore, and many lenders offer a choice of payment options. However, some lenders may requireyou to pay special fees or penalties if you choose to pay more, so check with your lender. Manyconsumers choose to pay down the principal regularly as they do with other loans. For example,if you use your line to buy a boat, you may want to pay it off as you would a typical boat loan.Whatever your payment arrangements during the life of the plan—whether you pay some, alittle, or none of the principal amount of the loan—when the plan ends, you may have to pay theentire balance owed, all at once. You must be prepared to make this “balloon payment” byrefinancing it with the lender, by obtaining a loan from another lender, or by some other means.If you are unable to make the balloon payment, you could lose your home.If your plan has a variable interest rate, your monthly payments may change. Assume, forexample, that you borrow 10,000 under a plan that calls for interest-only payments. At a 10percent interest rate, your monthly payments would be 83. If the rate rises over time to 15percent, your monthly payments will increase to 125. Similarly, if you are making paymentsthat cover interest plus some portion of the principal, your monthly payments may increase,unless your agreement calls for keeping payments the same throughout the plan period.If you sell your home, you will probably be required to pay off your home equity line in fullimmediately. If you are likely to sell your home in the near future, consider whether it makessense to pay the up-front costs of setting up a line of credit. Also keep in mind that renting yourhome may be prohibited under the terms of your agreement. : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
2.4/LQH RI FUHGLW YV WUDGLWLRQDO VHFRQG PRUWJDJH ORDQV 2.4 Line of credit vs. traditionalsecond mortgage loansIf you are thinking about a home equity line of credit, you might also want to consider atraditional second mortgage loan. This type of loan provides you with a fixed amount of money,repayable over a fixed period. In most cases, the payment schedule calls for equal payments thatpay off the entire loan within the loan period. You might consider a second mortgage instead of ahome equity line if, for example, you need a set amount for a specific purpose, such as anaddition to your home.In deciding which type of loan best suits your needs, consider the costs under the twoalternatives. Look at both the APR and other charges. Do not, however, simply compare theAPRs, because the APRs on the two types of loans are figured differently: The APR for a traditional second mortgage loan takes into account the interest ratecharged plus points and other finance charges. The APR for a home equity line of credit is based on the periodic interest rate alone. Itdoes not include points or other charges.2.4.1Disclosuresfrom lender2.4.1'LVFORVXUHV IURP OHQGHUV The federal Truth in Lending Act requires lenders to disclose the important terms and costs oftheir home equity plans, including the APR, miscellaneous charges, the payment terms, andinformation about any variable-rate feature. And in general, neither the lender nor anyone elsemay charge a fee until after you have received this information. You usually get these disclosureswhen you receive an application form, and you will get additional disclosures before the plan isopened. If any term (other than a variable-rate feature) changes before the plan is opened, thelender must return all fees if you decide not to enter into the plan because of the change.Lenders are also required to provide you with a list of homeownership counseling organizationsin your area.When you open a home equity line, the transaction puts your home at risk. If the home involvedis your principal dwelling, the Truth in Lending Act gives you three days from the day theaccount was opened to cancel the credit line. This right allows you to change your mind for anyreason. You simply inform the lender in writing within the three-day period. The lender must : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
then cancel its security interest in your home and return all fees— including any application andappraisal fees—paid to open the account.The Home Ownership and Equity Protection Act of 1994 (HOEPA) addresses certain unfairpractices and establishes requirements for certain loans with high rates and fees, includingcertain additional disclosures. HOEPA now covers some HELOCs. You can find out moreinformation by contacting the CFPB at the website address and phone number listed in theContact information appendix, below.:KDW LI WKH OHQGHU IUHH]HV RU UHGXFHV \RXU OLQH RI FUHGLW" 2.5 What if the lender freezes orreduces your line of credit?2.5Plans generally permit lenders to freeze or reduce a credit line if the value of the home “declinessignificantly” or when the lender “reasonably believes” that you will be unable to make yourpayments due to a “material change” in your financial circumstances. If this happens, you maywant to: Talk with your lender. Find out what caused the lender to freeze or reduce your creditline and what, if anything, you can do to restore it. You may be able to provide additionalinformation to restore your line of credit, such as documentation showing that yourhouse has retained its value or that there has not been a “material change” in yourfinancial circumstances. You may want to get copies of your credit reports (go to theCFPB’s website at it-report.htmlfor information about how to get free copies of your credit reports) to make sure all theinformation in them is correct. If your lender suggests getting a new appraisal, be sureyou discuss appraisal firms in advance so that you know they will accept the newappraisal as valid. Shop around for another line of credit. If your lender does not want to restoreyour line of credit, shop around to see what other lenders have to offer. If another lenderis willing to offer you a line of credit, you may be able to pay off your original line ofcredit and take out another one. Keep in mind, however, that you may need to pay someof the same application fees you paid for your original line of credit. : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
33(1',; APPENIX A:Defined Terms'HILQHG WHUPV This glossary provides general definitions for terms commonly used in the real estate market.They may have different legal meanings depending on the context.DEFINED TERMANNUAL MEMBERSHIP OR AnMAINTENANCEannual charge FEEfor access to afinancial product such as a line of Q DQQXDO FKDUJH IRU DFFHVV WR D ILQDQFLDO SURGXFW VXFK DV D OLQH RI FUHGLW ANNUALcredit,credit card, or account. The feeis chargedregardless of whether or notFUHGLW FDUG RU DFFRXQW 7KH IHH LV FKDUJHG UHJDUGOHVV RI ZKHWKHU RU QRW MEMBERSHIP ORproduct is used.MAINTENANCE FEE the WKH SURGXFW LV XVHG ANNUAL PERCENTAGE RATEThe(APR)cost of credit, expressed as ayearly rate. For closed-end credit, such7KH FRVW RI FUHGLW H[SUHVVHG DV D \HDUO\ UDWH )RU FORVHG HQG FUHGLW VXFK as carloans or mortgages, the APRANNUALincludesthe interest rate, points,DV FDU ORDQV RU PRUWJDJHV WKH 35 LQFOXGHV WKH LQWHUHVW UDWH SRLQWV PERCENTAGE RATE broker fees. and other credit chargesthatEURNHU IHHV DQG RWKHU FUHGLW FKDUJHV WKDW WKH ERUURZHU LV UHTXLUHG WR SD\ the borrower is required to pay. An(APR) Q 35 RU DQ HTXLYDOHQW UDWH LV QRW XVHG LQ OHDVLQJ DJUHHPHQWV APR,or an equivalent rate, is not usedIn leasing agreements.APPLICATION FEEFees charged when you apply for a loanor other credit. These fees may include)HHV FKDUJHG ZKHQ \RX DSSO\ IRU D ORDQ RU RWKHU FUHGLW 7KHVH IHHV PD\ chargesfor property appraisal and aAPPLICATION FEEcreditreport.LQFOXGH FKDUJHV IRU SURSHUW\ DSSUDLVDO DQG D FUHGLW UHSRUW BALLOON PAYMENTA large extra payment that may becharged at the and at a mortgage loan or ODUJH H[WUD SD\PHQW WKDW PD\ EH FKDUJHG DW WKH HQG RI D PRUWJDJH ORDQ BALLOON PAYMENT lease.RU OHDVH CAP (INTEREST RATE)CAP (INTERESTRATE) A limit on the amount that your interestrate can increase. Two types of OLPLW RQ WKH DPRXQW WKDW \RXU LQWHUHVW UDWH FDQ LQFUHDVH 7ZR W\SHV RI interest-ratecaps exist. Periodicadjustmentcaps limit the interest-rateLQWHUHVW UDWH FDSV H[LVW.Periodic adjustment caps OLPLW WKH LQWHUHVW UDWH increasefrom one adjustment period toLQFUHDVH IURP RQH DGMXVWPHQW SHULRG WR WKH QH[W Lifetimecaps OLPLW WKH the next. Lifeline caps limit theLQWHUHVW UDWH LQFUHDVH RYHU WKH OLIH RI WKH ORDQ %\ ODZ DOO DGMXVWDEOH UDWH interest-rateincrease over the tile ofthe PRUWJDJHV KDYH DQ RYHUDOO FDS loan. By law, all adjustable-ratemortgages have an overall cap.: 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
Closing or settlement costs Fees paid when you close (or settle) ona loan.These lees may includeRU VHWWOH RQ D ORDQ 7KHVH IHHV PD\ LQFOXGH )HHV SDLG ZKHQ \RX FORVH applicationlees; title examination.DSSOLFDWLRQ IHHV WLWOH H[DPLQDWLRQ DEVWUDFW RI WLWOH WLWOH LQVXUDQFH DQG abstract of title, title insurance. andSURSHUW\ VXUYH\ IHHV IHHV IRU SUHSDULQJ GHHGV PRUWJDJHV DQG propertysurvey lees; lees for preparingdeeds.mortgages. and settlementCLOSING ORVHWWOHPHQW GRFXPHQWV DWWRUQH\V¶ IHHV UHFRUGLQJ IHHV HVWLPDWHG FRVWV RI documents; attorneys lees; recordingSETTLEMENT COSTS lees;WD[HV DQG LQVXUDQFH DQG QRWDU\ DSSUDLVDO DQG FUHGLW UHSRUW IHHV 8QGHU estimated costs ol taxes andinsurance;and notary. appraisal. andWKH 5HDO (VWDWH 6HWWOHPHQW 3URFHGXUHV FW WKH ERUURZHU UHFHLYHV D JRRG creditreportlees. Under the RealIDLWK HVWLPDWH RI FORVLQJ FRVWV ZLWKLQ WKUHH GD\V RI DSSOLFDWLRQ 7KH JRRG Estate Settlement Procedures Act. theIDLWK HVWLPDWH OLVWV HDFK H[SHFWHG FRVW DV DQ DPRXQW RU D UDQJH borrowerreceives a good faith estimateof closing costs within three days ofapplication. The good laith estimatelistsexpectedcostthatas mayan amountorCredit LimitThe eachmaximumamountbe borrowedarange.on a credit can! or under a home equityfine7KH PD[LPXP DPRXQW WKDW PD\ EH ERUURZHG RQ D FUHGLW FDUG RU XQGHU D of credit plan.CREDIT LIMITKRPH HTXLW\ OLQH RI FUHGLW SODQ EQUITYEQUITYINDEXINDEXINTEREST RATEINTEREST RATEThe difference between the {air marketvalue of the home and the outstanding7KH GLffHUHQFH EHWZHHQ WKH IDLU PDUNHW YDOXH RI WKH KRPH DQG WKH balanceon you! mortgage plus anyoutstandinghome equity loans.RXWVWDQGLQJ EDODQFH RQ \RXU PRUWJDJH SOXV DQ\ RXWVWDQGLQJ KRPH HTXLW\ ORDQV The economic: indicator used tocalculate interest-rate adjustments foradjustable-ratemortgages or other7KH HFRQRPLF LQGLFDWRU XVHG WR FDOFXODWH LQWHUHVW UDWH DGMXVWPHQWV IRU adjustable-rateloans. The index rateDGMXVWDEOH UDWH PRUWJDJHV RU RWKHU DGMXVWDEOH UDWH ORDQV 7KH LQGH[ UDWH can increase or decrease at any time.SeeFDQ LQFUHDVH RU GHFUHDVH DW DQ\ WLPH 6HH DOVR 6HOHFWHG LQGH[ UDWHV IRU also Selected Index rates for ARMsover 50V RYHU DQ \HDU SHULRG an 11-year periodconsumerfinance.gov/f/201204 CFPB ARMsconsumerfinance.gov/f/201204 CFPB ARMs-brochure.pdf IRU brochure.pdffor examples of commonindexesthat have changed in the past.H[DPSOHV RI FRPPRQ LQGH[HV WKDW KDYH FKDQJHG LQ WKH SDVW The percentage rate used to determinethe cost of borrowing money. stated7KH SHUFHQWDJH UDWH XVHG WR GHWHUPLQH WKH FRVW RI ERUURZLQJ PRQH\ usuallyas a percentage of the principalloanVWDWHG XVXDOO\ DV D SHUFHQWDJH RI WKH SULQFLSDO ORDQ DPRXQW DQG DV DQ amount and as an annual rate.DQQXDO UDWH MARGINMARGINMINIMUM PAYMENTMINIMUM PAYMENT The number of percentage paints thetender adds to the index rate to7KH QXPEHU RI SHUFHQWDJH SRLQWV WKH OHQGHU DGGV WR WKH LQGH[ UDWH WR calculatethe adjustable-rate-mortgageinterestrate a each adjustment.FDOFXODWH WKH DGMXVWDEOH UDWH PRUWJDJH LQWHUHVW UDWH DW HDFK DGMXVWPHQW The lowest amount that you must pay(usually monthly) to keep your account7KH ORZHVW DPRXQW WKDW \RX PXVW SD\ in goodstanding. Under some plans. the XVXDOO\ PRQWKO\ WR NHHS \RXU DFFRXQW LQ JRRG VWDQGLQJ 8QGHU VRPH SODQV WKH PLQLPXP SD\PHQW PD\ minimumpayment may cover interest only.underothers. It may Include bothFRYHU LQWHUHVW RQO\ XQGHU RWKHUV LW PD\ LQFOXGH ERWK SULQFLSDO DQG principal and interest.LQWHUHVW : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
POINTS (ALSO CALLED discountOne POINTS)point is equal to 1 percent at theprincipal amount at a mortgage loan. For2QH SRLQW LV HTXDO WR SHUFHQW RI WKH SULQFLSDO DPRXQW RI D PRUWJDJH example.if a mortgage is 200.000. oneORDQ )RU H[DPSOH LI D PRUWJDJH LV RQH SRLQW HTXDOV pointequals 2.000. Lenders frequentlychargepoints in both fixed-rate and/HQGHUV IUHTXHQWO\ FKDUJH SRLQWV LQ ERWK IL[HG UDWH DQG DGMXVWDEOH UDWH adjustable-rate mortgages to cover loanPRUWJDJHV WR FRYHU ORDQ RULJLQDWLRQ FRVWV RU WR SURYLGH DGGLWLRQDO originationcosts or to provideadditionalcompensation to the lender orPOINTS (ALSOFRPSHQVDWLRQ WR WKH OHQGHU RU EURNHU 7KHVH SRLQWV XVXDOO\ DUH SDLG DW broker. These points usually are paid atCALLED DISCOUNTFORVLQJ DQG PD\ EH SDLG E\ WKH ERUURZHU RU WKH KRPH VHOOHU RU PD\ EH closingand may be paid by the borrowerPOINTS)VSOLW EHWZHHQ WKHP ,Q VRPH FDVHV WKH PRQH\ QHHGHG WR SD\ SRLQWV FDQ or thehome seller. or may be splitbetweenthem. InLQFRUSRUDWHG LQ WKH ORDQ DPRXQWsome cases. the moneyEH ERUURZHG EXW GRLQJ VR ZLOO LQFUHDVH needed to pay points can be borrowedWKH ORDQ DPRXQW DQG WKH WRWDO FRVWV 'LVFRXQW SRLQWV DOVR FDOOHG GLVFRXQW (incorporatedin the loan amount). butdoingso DUH SRLQWV WKDW \RX YROXQWDULO\ FKRRVH WR SD\ LQ UHWXUQ IRU D ORZHU will increase the loan amountIHHVand the total costs. Discount pointsLQWHUHVW UDWH (alsocalled discount fees) are pointsthat you voluntarily choose to pay inreturn for a lower interest rate.SECURITY INTERESTIf stated in your credit agreement. acreditor. lessor. or assignee's legalright,I VWDWHG LQ \RXU FUHGLW DJUHHPHQW D FUHGLWRU OHVVRU RU DVVLJQHH¶V OHJDO to your property (such as yourULJKW WR \RXU SURSHUW\ VXFK DV \RXU KRPH VWRFNV RU ERQGV WKDW VHFXUHV home.stocks. or bonds) thatsecuresSECURITY INTEREST payment of your obligation under theSD\PHQW RI \RXU REOLJDWLRQ XQGHU WKH FUHGLW DJUHHPHQW 7KH SURSHUW\ WKDW credit agreement. The property thatVHFXUHV SD\PHQW RI \RXU REOLJDWLRQ LV UHIHUUHG WR DV ³FROODWHUDO securespayment at your obligation isreferred to as ’collateral.“TRANSACTION FEEFee charged each time a withdrawal orotherspecified transaction is made on a)HH FKDUJHG HDFK WLPH D ZLWKGUDZDO RU RWKHU VSHFLILHG WUDQVDFWLRQ LV line of credit, such as a balanceTRANSACTION FEEPDGH RQ D OLQH RI FUHGLW VXFK DV D EDODQFH WUDQVIHU IHH RU D FDVK DGYDQFH transferfee or a cash advance fee.IHH VARIABLE RATEVARIABLE RATE An interest rate that changesperiodically in relation to an index. Q LQWHUHVW UDWH WKDW FKDQJHV SHULRGLFDOO\ LQ UHODWLRQ WR DQ LQGH[ VXFK DV suchas the prime rate. Payments mayWKH SULPH UDWH 3D\PHQWV PD\ LQFUHDVH RU GHFUHDVH DFFRUGLQJO\ Increaseor decrease accordingly.: 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
33(1',; % Appendix B0RUH LQIRUPDWLRQ More informationFor more information about mortgages, including home equity lines of credit, visitconsumerfinance.gov/mortgage. For answers to questions about mortgages and other financialtopics, visit consumerfinance.gov/askcfpb. You may also visit the CFPB’s website atconsumerfinance.gov/owning-a-home to access interactive tools and resources for mortgageshoppers, which are expected to be available beginning in 2014.Housing counselors can be very helpful, especially for first-time home buyers or if you’re havingtrouble paying your mortgage. The U.S. Department of Housing and Urban Development (HUD)supports housing counseling agencies throughout the country that can provide free or low-costadvice. You can search for HUD-approved housing counseling agencies in your area on theCFPB’s web site at consumerfinance.gov/find-a-housing-counselor or by calling HUD’sinteractive toll-free number at 800-569-4287.The company that collects your mortgage payments is your loan servicer. This may not be thesame company as your lender. If you have concerns about how your loan is being serviced oranother aspect of your mortgage, you may wish to submit a complaint to the CFPB atconsumerfinance.gov/complaint or by calling (855) 411-CFPB (2372).When you submit a complaint to the CFPB, the CFPB will forward your complaint to thecompany and work to get a response. Companies have 15 days to respond to you and theCFPB. You can review the company’s response and give feedback to the CFPB. : 7 28 6 28/' .12: %287 20( (48,7 /,1(6 2) &5(',7 (67 H
Appendix C: 33(1',; & &RQWDFW LQIRUPDWLRQ Contact informationFor additional information or to submit a complaint, you can contact the CFPB or one of theother federal agencies listed below, depending on the type of institution. If you are not surewhich agency to contact, you can submit a complaint to the CFPB and if the CFPB determinesthat another agency would be better able to assist you, the CFPB will refer your com plaint tothat agency and let you know.Regulatory agency5HJXODWRU\ DJHQF\ Regulated entities5HJXODWHG HQWLWLHV Contact information&RQWDFW LQIRUPDWLRQ Consume: Financial Protection BureauInsured depository institutions and(855) 411-CFPB (2372)(CFPB) PO. Box 4503 lowa City. IAcredit52244unions with assets greater than consumerfinance.gov 10,QVXUHG GHSRVLWRU\ LQVWLWXWLRQV DQG billion (and their affiliates), andconsumerfinance.gov/complaintnon-bankproviders at consumer financialFUHGLW XQLRQV ZLWK DVVHWV JUHDWHU products and services, includingWKDQ ELOOLRQ DQG WKHLU DIILOLDWHV mortgages,credit cards,debtConsumer FinancialDQG QRQ EDQN SURYLGHUV RI collection,consumer reports, prepaidProtection Bureau &)3% cards, private education loans, and &)3% FRQVXPHU ILQDQFLDO SURGXFWV DQG payday lending3 2 %R[ FRQVXPHUILQDQFH JRY VHUYLFHV LQFOXGLQJ PRUWJDJHV FUHGLW ,RZD &LW\ , FRQVXPHUILQDQFH JRY FDUGV GHEW FROOHFWLRQ FRQVXPHU FRPSODLQW UHSRUWV SUHSDLG FDUGV SULYDWH HGXFDWLRQ ORDQV DQG SD\GD\ OHQGLQJ Board of Governors of the Federal Federally insured state-chartered bank (888) 851-1920Reserve System (FRB) ConsumermembersHelp 1200of the Federal Reserve Systemfederalereserveconsumerhelp.govMinneapolis. MN 55480Board of Governors of the Federal Res
A home equity line of credit is a form of revolving credit in which your home serves as collateral. Because a home often is a consumer's most valuable asset, many homeowners use home equity credit lines only for major items, such as education, home improvements, or medical bills, and choose not to use them for day-to-day expenses.
Although you think you do, you don’t know jack about me. You don’t know the pain, the hate, or the sorrow inside. You don’t know how it feels to have to compete and to constantly have to prove yourself. You don’t know how it feels to battle the stereotypes and the prejudice. You don’t know, or do you
If you are happy and you know it, clap your hands If you are happy and you know it, clap your hands If you are happy and you know it, and you really want to show it, If you are happy and you know it, clap your hands (continue with these actions; stamp your feet, turn around, shout hooray)
Old Jim Crow don't you know It's all over now Old Jim Crow You've been around too long Gotta work the devil 'Til your dead and gone Old Jim Crow Yes, don't you know It's all over now It's all over now Old Jim Crow You know it's true When you hurt my brother You hurt me too Old Jim Crow don't you know It's all over now Old Jim Crow
Get out of your own way and be genuinely you “Faking it” makes everyone uncomfortable Learn and grow, don’t copy “You know what you know what you know” Don’t try to project or act in your interview (I know they try to coach otherwise) It’s OK to say, “I don’t know, but
1 Pamela Rao. Office of HIV/AIDS. USAID Concept Note . Everybody’s Business 2007 4 Know your Epidemic, Know your System, Know your Response various governmental and nongovernmental agencies, groups which have access to health care and the means by
Understand what an operating system is and the role it plays. Know and identify Windows 7 desktop components Know and apply how to open and explore the control panel. Know and apply how to personalize the desktop. Know and identify the components of a window. Know and apply how to manage multiple windows and multiple monitors. Know and apply how to change the date .
Understand what is an operating system and the role it plays. Know and identify Windows 7 desktop components Know and apply how to open and explore the control panel. Know and apply how to personalize the desktop. Know and identify the components of a window. Know and apply how to manage multiple windows and multiple monitors. Know and apply how to change the date .
what I say, so you might as well know what you're doing. Reality: Most applications only need a small set of well-understood standard idioms which are easy to get right. 55 minutes from now, you should: Know what to do in 99% of the situations you'll encounter. Know where some of the common mistakes are.
