Principal Bank Home Equity Loan - Important Terms
This disclosure contains important information about a Home Equity Loan (your Loan). You should read it carefully and keep a copy for your records. This is not a commitment to make a loan.
Availability Of Terms: All of the terms described below are subject to change. If these terms change [other than the annual percentage rate (APR)] and you decide, as a result, not to enter into an agreement with us, you are entitled to a refund of any fee that you paid to us or anyone else in connection with your application.
Security Interest: We will take a mortgage on your home. You could lose your home if you do not meet obligations in your agreement with us.
Lendable Equity: The amount of your Loan depends on the lendable equity in your home net of any existing debt secured by your home. Equity is based on appraised value in conjunction with your existing first mortgage loan. You provide a copy of this appraisal to the Bank. We may also estimate available equity using a method determined by us to support a loan amount greater than that supported by your appraisal. If a new appraisal is necessary to support the lendable equity desired by you, you will pay for this appraisal.
Fees and Charges: You may pay certain fees to third parties. Certain states impose higher mortgage filing fees and taxes. Please call us at 1.800.672.3343 if you would like an estimation of the fees you will have to pay. Your home equity loan is subject to a $500 deferred origination fee. Collection of this fee is deferred until the date on which your Loan is terminated for any reason. However, this fee shall be permanently waived if your Loan remains open after the third anniversary of the date on which your loan was opened. You must carry insurance on the property that secures your Loan.
Appraisal Costs: The amount of your loan depends in part on the lendable equity in your home net any existing debt secured by your home. Equity is based on appraised value in conjunction with your existing first mortgage loan. You provide a copy of this appraisal to the Bank. We may also estimate available equity using a method determined by us to support a loan amount greater than that supported by your appraisal. If a new appraisal is necessary to support the lendable equity desired by you, you will pay for this appraisal.
Refundability Of Fees: If you decide not to enter into this loan within three days of receiving this disclosure and the Home Equity booklet, you are entitled to a refund of any fee you may have already paid.
Tax Deductibility: You should consult a tax advisor regarding the deductibility of interest and charges for your Loan.
Principal Bank, 711 High Street, Des Moines, IA 50392-0040 -- 1.800.672.3343
