Mortgage Important Loan Information, Disclosures, Assumptions

Home Equity Loan (HELOAN) Important Loan Information:

The information provided assumes the purpose of the loan is to refinance a property, with a loan amount of $150,000 and an estimated property value of $250,000 (Loan-to-value 60%). The property is located in Yarmouth Port, MA and is within Barnstable County. The property is an existing single family home and will be used as a primary residence. An escrow (impound) account will not be established. The rate lock period is 55-days and the assumed credit score is 760.

Home Equity Loan – 20 Year Fixed Rate (Example)

At a 4.00%* interest rate, the APR for this loan type is 4.128%. The monthly payment schedule would be:

• 239 payments of $908.97 at an interest rate of 4.00%
• 1 payment of $909.14 at an interest rate of 4.00%

The payment example does not include taxes and insurance which will make the payment greater. If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate taxes and homeowner’s insurance premiums.

Minimum loan amount of $10,000 and maximum loan amount $250,000.    Maximum loan amount not to exceed 85% of property value.  *The rate illustrated above includes a discounted rate of .25% based on automatic payments form a personal account at The Cooperative Bank of Cape Cod.  If at any time the automatic payment is removed from the account, the APR would increase by .25%.  Subject to credit approval.

Bank paid closing costs and fees.   These costs are limited to Appraisal or AVM Fee, title run-down, title insurance, and recording fees for the new loan, flood insurance certificate and equity line checks.   Any additional expenses are not considered part of typical closing costs and will be the responsibility of the borrower(s).   These additional fees include, but are not limited to, appraisal fee, transfer of title (re-deeding), trust review, preparation and recording of trustee certificate, Homestead Act preparation and recording, and fees for preparation and recording of previous discharge.

Home Equity Loan – 15 Year Fixed Rate (Example)

At a 3.750%* interest rate, the APR for this loan type is 3.910%. The monthly payment schedule would be:

• 179 payments of $1,090.83 at an interest rate of 3.750%
• 1 payment of $1,091,70 at an interest rate of 3.750%

The payment example does not include taxes and insurance which will make the payment greater. If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate taxes and homeowner’s insurance premiums.

Minimum loan amount of $10,000 and maximum loan amount $250,000.    Maximum loan amount not to exceed 85% of property value.  *The rate illustrated above includes a discounted rate of .25% based on automatic payments form a personal account at The Cooperative Bank of Cape Cod.  If at any time the automatic payment is removed from the account, the APR would increase by .25%.  Subject to credit approval.

Bank paid closing costs and fees.   These costs are limited to Appraisal or AVM Fee, title run-down, title insurance, and recording fees for the new loan, flood insurance certificate and equity line checks.   Any additional expenses are not considered part of typical closing costs and will be the responsibility of the borrower(s).   These additional fees include, but are not limited to, appraisal fee, transfer of title (re-deeding), trust review, preparation and recording of trustee certificate, Homestead Act preparation and recording, and fees for preparation and recording of previous discharge.

Home Equity Line of Credit (HELOC) Important Loan Information:

The Annual Percentage Rate (APR) for this Home Equity Line of Credit (HELOC) is Prime plus 0.50%, and is a variable rate loan based on the highest domestic Prime Rate published in The Wall Street Journal with a FICO score of 700 and Combined Loan-to-Value of 80%. The Prime Rate as of 1/2/2024 is 8.50%. In order to qualify for the auto-pay discount (-.50%) payments must be deducted automatically from a Cooperative Bank of Cape Cod checking account. If this qualification is not met at closing, borrower’s rate is subject to increase to Prime plus .50%. Ten (10)-year draw period (Interest Only) followed by a repayment term of twenty (20)-year (fully amortizing). Minimum line amount is $10,000. Maximum line with interest only payment amount is $500,000 (1 Unit/Second Home/Condo). Loan to value not to exceed 80% with a valid appraisal. Min FICO score of 660 (1st lien) or +680 (2nd lien) is required. Borrower(s) initial APR is subject to change based on a risk based pricing model when assessing FICO and loan to value prior to loan closing. Property insurance is required, and flood insurance, if necessary. Properties pledged as collateral that were acquired through foreclosure, short sale, gift of equity or other similar type transactions will require a full appraisal. Trust review fees of up to $500 for properties held in trust. $500 penalty for early termination during first 12 months; $350 penalty for early termination during months 13-36. Annual fee of $50 regardless of HELOC balance. Consult a tax advisor regarding the tax deductibility of interest. The maximum possible APR is 18%. Floor Rate is 5%. Other restrictions may apply, other products available. Call 508.568.3400 for current rates. This flyer is for informational purposes and subject to change at any time. This offer is subject to change at any time without notice.

General Mortgage Disclosure Information:

• Information displayed is accurate as of the date of the latest update and is subject to change without notice. Loan pricing can only be locked through a Residential Mortgage Loan Officer (MLO). Other restrictions may apply.
• Due to various federal, state and local requirements, certain products may not be available in all lending areas.
• The monthly payment amount displayed includes principal and interest. It does not include mortgage insurance. If the down payment is less than 20%, mortgage insurance may be required and could increase the monthly payment and APR. The payment amount does not include homeowner’s insurance or property taxes which must be paid in addition to your loan payment.
• The displayed Annual Percentage Rate (APR) for the loan products shown reflects the interest rate and applicable closing costs.
• Mortgage interest rates shown are based on a 55-day rate lock period. Under certain circumstances, a 55-day rate lock may not be available.
• These mortgage rates are based upon a variety of assumptions and conditions which include a consumer credit score which may be higher or lower than your individual credit score. Your loan’s interest rate will depend upon the specific characteristics of your loan transaction and your credit history up to the time of closing.
• THE ESTIMATED TOTAL CLOSING COSTS ABOVE DO NOT CONSTITUTE AND ARE NOT A SUBSTITUTE FOR THE LOAN ESTIMATE (LE) OF CLOSING COSTS THAT YOU WILL RECEIVE ONCE YOU APPLY FOR A LOAN. The amounts provided above for Estimated Total Closing Costs, are estimations based on the state selected. This is NOT a mortgage loan approval or commitment to lend. The actual fees, costs and monthly payment on your specific loan transaction may vary, and may include city, county or other additional fees and costs.

What Factors Can Affect My Loan Pricing?

Various factors that can adjust your loan pricing. The major factors include:

• Credit Profile. We will obtain a credit report that shows the amount of debt you have outstanding and how you have historically paid on your debt and obligations. The credit report will also contain a “credit score” that ranks your credit history. Credit scores look at five main kinds of credit information, namely: payment history; amount owed; length of credit history; new credit; and types of credit in use. Generally, if you have had any history of nonpayment or late payments on any loans or debt, this may lower your credit score and increase your interest rate and costs. People with high credit scores consistently: pay their debts on time, keep balances low on credit cards and other revolving loans; and apply for and open new credit accounts only as needed.
• The type of property you are mortgaging also impacts your loan pricing. For example, investment property, condominiums or multifamily housing are usually considered to have a higher risk to lenders than single-family detached homes. The value of the property (usually determined by an appraisal) as compared to the amount you wish to borrow (the “loan-to-value ratio” or “LTV”) also impacts your loan price. The higher the LTV, the higher the interest rate and costs. LTV’s over 80% also usually require mortgage insurance. The price of mortgage insurance may vary based on your credit profile.
• Income/Debt. The amount of your mortgage payments and total debt payments as compared to your income, (“debt-to-income ratios”) may also impact your loan cost. The higher your debt-to-income ratio, the higher our risk, and so the higher the interest rate and fees.
• Other Factors. Other factors may also affect our risk, and your interest rate and origination charge. These factors include, but are not limited to: previous bankruptcies, foreclosures or unpaid judgments; and the type of loan product applied for, such as adjustable rate versus fixed rate, or cash out refinance versus rate and term refinance.

How and When Is My Price Determined?

• Your price is determined by evaluating all the risk factors that are involved in your loan, and determining where you fit into our risk/price range.
• The Cooperative Bank of Cape Cod will give you an estimate of your risk-based pricing after we have done an initial evaluation of your credit history and a review of your proposed property.
• REMEMBER, however, that your risk-based pricing may change from this initial estimate if any of the risk factors discussed above change – for example, if the appraised value of the property is determined to be different than the value used for your initial estimate or if your credit profile changes between the time of the initial estimate and closing.
• If you choose to “lock” a rate prior to the final risk assessment, you will be locked for the interest rate available at that time. Your actual price will be established based on where your final risk level fits into that particular interest rate range. Your final risk level is determined at time of closing, when there are no further changes to your credit profile or loan factors.

Is There a Way to Obtain a Lower Price?

If you are not in the lowest price bracket available, you may be able to obtain a lower price if you are able to lower our risk. You may accomplish this in various ways, such as: by putting more money down and lowering the LTV; finding a co-signer with additional income to support the loan; clearing inaccurate items on your credit report; paying off other debt to lower your debt-to-income ratio; changing from a cash-out refinance to rate and term refinance; or changing the term on the loan.