Atlantic Stewardship Bank

Information Statement For Fixed Rate Home Equity Loan With Automatic Payment Deduction Discount

Please read the following information carefully and print a copy for your records.

PLEASE NOTE: This analysis is only intended to give you a general description of the discounted rate we offer when payments are automatically deducted from an Atlantic Stewardship Bank checking account. This is not a contract document, and should not be used to interpret any provisions of your Note or Deed of Trust, Mortgage or Security Deed (the Security Instrument). You will be bound by the provisions of your Note and Security Instrument and should become familiar with and understand these documents before signing them. If there is any conflict between this and your Note and Security Instrument, your obligations will be established by your Note and Security Instrument. You have the right to seek legal advice before signing the loan documents.

The Automatic Payment Deduction Discount is a loan program which provides for an increase in the interest rate on the note under certain conditions. The interest rate on this note will increase under the following circumstances: If payment is other than automatic debit from a demand deposit account at Atlantic Stewardship Bank. The interest rate on this note will increase as follows:by one-quarter of one percent (.25%).

Initial Interest Rate

Your initial interest rate for the term of the loan is established at the Lenders’ discretion. Your interest rate may reflect a discount which is not based on any index. If discounted, your rate may increase at least once after settlement if payment is other than automatic debit from a demand deposit account at Atlantic Stewardship Bank. Please ask us about our current interest rate discount.

Initial Payment

Your total monthly payment for the term of the loan is established by determining the amount it will take to repay the original principal balance and interest over the term of the loan in substantially equal payments at the initial interest rate.

Change Dates

Your initial interest rate will remain in effect for the full term of the loan. Your interest rate may change if payment is other than automatic debit from a demand deposit account at Atlantic Stewardship Bank. The rate change will be effective thirty (30) days from the date you notify the Bank to cease automatic debits of payments. Any additional interest accrual resulting from the increase in rate will be reflected in the final payment.

Index

The initial interest rate is not based on an index.

Calculation of Changes

In the event of a change of rate, the note holder will calculate the new interest rate by adding one-quarter of one percent (.25%) to the current rate.

Interest Rate Change Limits

The interest rate on your loan shall not increase in the aggregate over the full term of the loan by more than one quarter of one percentage point (.25%) above the initial interest rate set forth in your note.

Notice of Changes

You will be sent a notice that your interest rate will be adjusted at least 25 days before the change date. The notice will contain the following information:

your new interest rate;
loan balance;
the date the new interest rate will become effective

Fees

* Third Party Fees: You must pay certain fees to third parties such as appraisers, credit reporting firms and government agencies. These third party fees generally total between $20.00 and $1,000.00. Upon request, we will provide you with an itemization of the fees you will have to pay to third parties.
Termination Fees: A termination fee of $400.00 will be charged if loan is terminated within eighteen (18) months of loan date.; This summary is for informational purposes only.It is not a loan commitment. Specific information regarding your loan will be contained in the loan documents.; * All Third Party Fees, other than the $80.00 Recording Fee and a $20.00 Mortgage Cancellation Fee, if applicable, are waived.; Title insurance will be required for loans of $250,000.00 or more.; I certify that I have received and understand this disclosure.

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