InBank

Second Mortgage or Home Improvement Loan Application

InBank
15533 South Cicero Avenue Oak Forest, Illinois 60452 (708) 687-6000
Member F.D.I.C.

Type of Loan Applied For:

Amount: $

Interest Rate:
Simple Interest
Add-On
%

No. of Months:

Monthly payment Principle & Interest:

Property Type:

Address of Property to be Improved:

Street Address:
Address Line 2:
City:
State:
Postal / Zip Code:

Date Purchased:
Cash Down Payment:
Purchase Price:$
Present Value of Home:$

Title in name of:

Address of title holder:

Street Address:
Address Line 2:
City:
State:
Postal / Zip Code:

Yr. house built:	No. of Rooms:	No. of Bedrooms:	No. of Baths:	Family Room or Den? No Yes	Gross Living Area: Sq. Ft.	Garage or Carport:(Specify type & no.)	Central Air? No Yes
If this is a new residential structure, has it been completed and occupied for 90 days or longer? No Yes

Purpose	Type of Improvement - (w/o selecting an option you will not be able to submit this form)
	Home Improvements Home Purchase Home Refinance	Debt Consolidation Tuition

The Co-Borrower Section and all other Co-Borrower questions must be completed and the appropriate box(es) checked if:
another person will be jointly obligated with the Borrower on the loan, or
the Borrower is relying on income from alimony, child support or separate maintenance or on the income or assets of another person as basis for repayment of the loan, or
the Borrower is married and resides, or the property is located, in a community property state.
We intend to apply for joint credit

Applicant	Co-Applicant
Date	Date

Borrower

Name	Date of Birth

Present Address: No. of Years:

Own Rent

Street:

City:

State:

Zip Code:

Former Address (if less than 2 years at present address):
Street:	City:	State:	Zip Code:
Years at former address:			Own Rent

Complete for secured loans only:
Married Separated
Unmarried (incl. single, divorced, widowed)

Dependents other than listed by Co-Borrower:
No.: Ages:

Name and Address of Employer:

Years employed in this line of work or profession?
Years: Years on this job:
Self-Employed

Drivers License Num.:	State I.D.:	Other:
Position/Title:	Type of Business:	Social Security Number:
Home Phone:	Business Phone:

Name and Address of nearest relative not living with you:
Relationship:	Home Phone:

Co Borrower

Name	Date of Birth

Present Address: No. of Years:

Own Rent

Street:

City:

State:

Zip Code:

Former Address (if less than 2 years at present address):
Street:	City:	State:	Zip Code:
Years at former address:			Own Rent

Complete for secured loans only:
Married Separated
Unmarried (incl. single, divorced, widowed)

Dependents other than listed by Co-Borrower:
No.: Ages:

Name and Address of Employer:

Years employed in this line of work or profession?
Years: Years on this job:
Self-Employed

Drivers License Num.:	State I.D.:	Other:
Position/Title:	Type of Business:	Social Security Number:
Home Phone:	Business Phone:

Name and Address of nearest relative not living with you:
Relationship:	Home Phone:

Gross Monthly Income				Bank	Account No.	Name & Address of Depository
Item	Borrower	Co-Borrower	Total	Checking No Yes
Empl. Income
Other (before completing, see the notice in ‘Describe Other Income’ below.)
				Savings No Yes

Total

Describe Other Income
Borrower Co-Borrower	NOTICE: Alimony, child support, or separate maintenance income need not be revealed if the Borrower or Co-Borrower does not choose to have it considered as a basis for repaying this loan.	Monthly Amount
		$
		$
		$

If Employed in Current Position for Less Than Two Years, Complete the Following
Borrower Co-Borrower	Previous Employer/School	City/State	Type of Business	Position/Title	Dates From/To	Monthly Income
						$
						$

These Questions Apply to Both Borrower and Co-Borrower
If a "yes" answer is given to a question in this column, please explain on an attached sheet.	Borrower	Co-Borrower
Are there any outstanding judgements against you?	No Yes	No Yes
Have you been declared bankrupt within the past 7 years?	No Yes	No Yes
Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?	No Yes	No Yes
Are you a party to a law suit?	No Yes	No Yes
Are you obligated to pay alimony, child support, or separate maintenance?	No Yes	No Yes
Are you a co-maker or endorser on a note?	No Yes	No Yes
Do you have any past due obligations owed to or insured by any agency of the federal government?**	No Yes	No Yes
Are you a U.S. citizen?	No Yes	No Yes
If "no", are you a resident alien?	No Yes	No Yes
If "no", are you a non-resident alien?	No Yes	No Yes
**Required only if FHA or VA home improvement loan.

*DEBTS: List all fixed obligations and installment accounts. (Indicate by asterisk all FHA and Government Agency Loans.) If no outstanding debt, list three previous credit references.**
Borrower Co-Borrower	Creditor's Name and Address		Account No.	Date Incurred (mm/dd/yyyy)	Original Amount	Present Balance	Monthly Payments	Amount Past Due
					$	$	$	$
					$	$	$	$
					$	$	$	$
					$	$	$	$
					$	$	$	$
					$	$	$	$
					$	$	$	$
					$	$	$	$
Auto Real Estate
	Lien Holder:	Year: Make:			$	$	$	$
	Lien Holder:	Year: Make:			$	$	$	$
	Name & Address of First Lien Holder of Security Property:				$	$	$	$
	Name & Address of Subordinate Lien Holder(s) of Security:				$	$	$	$
					$	$	$	$
	List Debts on Other Real Estate Owned:				$	$	$	$
					$	$	$	$
List any additional names under which credit has previously been received:
			If not included in monthly mortgage payment enter the following:
			Monthly payment for Taxes and Insurance:				$	$
			Monthly payment for Home Owner Association dues:				$	$
			Total Monthly Obligations:				$	$

Important - Applicant Read Before Signing
I/We apply for the loan indicated in this application which may be secured by a mortgage or deed of trust on the property described herein and represent that the property will not be used for any illegal or restricted purpose, and that all statements made in this application are true and are made for the purpose of obtaining the loan. Verification may be obtained from any source named in this application. The original or a copy of this application will be retained by the lender, even if the loan is not granted. I/We hereby consent to and authorize the lender or HUD-FHA, after the giving of reasonable notice, to enter the improved property for the sole purpose of determining that the improvements specified in this application have been completed.
I/WE UNDERSTAND THAT THE SELECTION OF A CONTRACTOR OR DEALER, ACCEPTANCE OF MATERIAL USED AND WORK PERFORMED IS MY/OUR RESPONSIBILITY. NEITHER THE LENDER NOR HUD-FHA GUARANTEES THE MATERIAL OR WORKMANSHIP.
I/We	Do Do Not	intend to occupy the property as my/our primary residence.
I/We understand that it may be a federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of the United States/Criminal Code.
Borrower's Signature		Date
Co-Borrower's Signature		Date

Dear Applicant:

Please find enclosed an application for our InBank Fixed Rate Home Equity loan program.  By completing this application package, you will have applied to borrow the following:

Up to 85% of the fair market value of your home, less the outstanding first mortgage balance.  The interest rate and terms shall be determined by your credit score, which we will obtain from Trans Union:

Credit Score of 681 or above for all applicants: 8.0% APR, 7 Year Term, 20 Year Payment Schedule (optional).  No Costs.

Credit Score of 680 or below on any applicant:  8.25% APR, 7 Year Term, 20 Year Payment Schedule (optional).  No Costs.

In addition, if you sign up for auto-pay from an InBank checking account, we will reduce the rate by .25%.  In the event you cancel the auto-pay during the term of the loan, then this rate reduction will be canceled.

At the top of the application please provide us with your property address and the purpose of the loan (that is what you will be using the proceeds of the loan for).  The purpose should be written in the “Improvements Planned” section.

The rest of this application, both front and back, should be completed as accurately as possible.  Please remember to sign the back of the application where it is appropriate.

To apply, please complete the attached and return with the following:

- Two Years Income Tax Returns (all schedules) with W-2's
- 1 Month Current Pay stubs
- Two years Business Tax Returns (all schedules) if applicable
- Statement from 1st Mortgage Holder showing Principal Balance Owed

Please do not hesitate to call our Loan Representatives for details about the InBank Home Equity Line of Credit Loan.

We value you as a customer and welcome the opportunity to be of service.

Sincerely,
Eileen Turner
Branch Manager

NOTICE OF AVAILABILITY OF APPRAISAL

Upon written request, you are entitled to a copy of the appraisal report used in connection with your application for credit secured by a lien on your home.  Please forward your request to:

InBank 
15533 S. Cicero 
Oak Forest, Illinois 60452

This appraisal must be mailed or delivered within 30 days after we receive your request or the report, or reimbursement from you for the report, whichever is later.  We need not provide the report when your request is received more than 90 days after we have provided you with notice of the action taken on the application or 90 days after the application is withdrawn.

NOTICE OF YOUR FINANCIAL 
PRIVACY RIGHTS 
We, our, and us, when used in this notice, mean InBank. 
This is our privacy notice for our customers. When we use the words "you" and "your" we mean the following types of customers: 
•	Our consumer customers who have a continuing relationship by purchasing or holding financial products or services such as a(n): 
•	Deposit account 
•	Loan account 
•	Safe deposit box 
•	Self-directed Individual Retirement Account 
We will tell you the sources of the information we collect about you. We will tell you what measures we take to secure that information. 
We first define some terms. 
Nonpublic personal information means information about you that we collect in connection with providing a financial product or service to you. Nonpublic personal information does not include information that is available from public sources, such as telephone directories or government records. Hereafter, we will use the term "information" to mean nonpublic personal information as defined in this section. 
An affiliate is a company we own or control, a company that owns or controls us, or a company that is owned or controlled by the same company that owns or controls us. Ownership does not mean complete ownership, but means owning enough to have control.
A nonaffiliated third party is a person we do not employ or a company that is not an affiliate of ours. This is also known as nonaffiliated third party, or simply, an "other party."

THE INFORMATION WE COLLECT 
We collect information about you from the following sources: 
•	Information you give us on applications or other forms 
•	Information about your transactions with us 
•	Information about your transactions with other parties 
•	Information from a consumer reporting agency 
•	Information we receive as a result of verifying customer information 
INFORMATION WE DISCLOSE ABOUT YOU 
We do NOT disclose any information about you to anyone, except as permitted by law. Examples of this might include disclosures necessary to service your account or prevent unauthorized transactions. 
THE CONFIDENTIALITY, SECURITY, AND INTEGRITY
OF YOUR INFORMATION 
We restrict access to information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards to protect this information.<br /> 
INFORMATION ABOUT FORMER CUSTOMERS 
We do not disclose information about former customers, except as permitted by law.

Joint Marketing/Service Provider Disclosure
We may disclose the following information to companies that perform marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements:

•	Information we receive from you on applications or other forms, such as your name, address, social security number, assets, income; 
•	Information about your transactions with us, our affiliates, or others, such as your account balance, payment history, and parties to transactions.
You do not have a right to opt out of the disclosure of this information.

** I acknowledge receipt of the “Important Terms of Our Home Equity Lines of Credit” and When Your home is on the Line: What you Should Know about Home Equity Lines of Credit” disclosures.

I Agree to the terms of the above disclosure

The following information is intended to help consumers understand home equity lines of credit. This information is based on a consumer brochure published by the Federal Reserve Board entitled When Your Home Is On the Line: What You Should Know About Home Equity Lines of Credit.

WHEN YOUR HOME IS ON THE LINE: WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT

More and more lenders are offering home equity lines of credit. By using the equity in your home, you may qualify for a sizable amount of credit, available for use when and how you please, at an interest rate that is relatively low.  Furthermore, under the tax law – depending on your specific situation – you may be allowed to deduct the interest because the debt is secured by your home. 
If you are in the market for credit, a home equity plan may be right for you. Or perhaps another form of credit would be better. Before making a decision, you should weigh carefully the costs of a home equity line against the benefits. Shop for the credit terms that best meet your borrowing needs without posing undue financial risk. And remember, failure to repay the amounts you’ve borrowed, plus interest, could mean the loss of your home.

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 the home is likely to be a consumer’s largest asset, many homeowners use their credit lines only for major items such as education, home improvements, or medical bills and not for day-to-day expenses.

With a home equity line, you will be approved for a specific amount of credit – your credit limit, the maximum amount you may borrow at any one time under the plan. Many lenders set the credit limit on a home equity line by taking a percentage (say, 75 percent) of the home’s appraised value and subtracting from that the balance owed on the existing mortgage. For example:

Appraised value of home               $100,000 
    Percentage                                x 75% 
    Percentage of appraised value           $75,000 
    Less balance owed on mortgage           -40,000 
    -------------------------------------------------- 
    Potential credit                        $35,000 
 
In determining your actual credit limit, the lender will also consider your ability to repay, by looking at your income, debts, and other financial obligations as well as your credit history. Many home equity plans set a fixed period during which you can borrow money, such as 10 years. At the end of  this “draw period,” you may be allowed to renew the credit line. If your plan does not allow renewals, you will not be able to borrow additional money once the period has ended. Some plans may call for payment in full of any outstanding balance at the end of the period. Others may allow repayment over a fixed period (the “repayment period”), for example, 10 years.

Once approved for the home equity line of credit, you will most likely be able to borrow up to your credit 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 limitations on how you use the line. Some plans may require you to borrow a minimum amount each time you draw on the line (for example, $300) and to keep a minimum amount outstanding. Some plans may also require that you take an initial advance when the line is set up.

What Should You Look For When Shopping For a Plan?
If you decide to apply for a home equity line of credit, look for the plan that best meets your particular needs. Read the credit agreement carefully, and examine the terms and conditions of various plans, including the annual percentage rate (APR) and the costs of establishing the plan. The APR for a home equity line is based on the interest rate alone and will not reflect the closing costs and other fees and charges, so you’ll need to compare these costs, as  well as the APRs, among lenders.

Interest rate charges and related plan features. Home equity lines of credit typically involve variable rather than fixed interest rates. The variable rate must be based on a publicly available index (such as the prime rate published in some major daily newspapers or a U.S. Treasury bill rate); the interest rate for borrowing under the home equity line changes, mirroring fluctuations in the value of the index. Most lenders cite the interest rate you will pay as the value of the index at a particular time plus a “margin," such as 2 percentage points. Because the cost of borrowing is tied directly to the value of the index, it is important to find out which index is used, how often the value of the index changes, and how high it has risen in the past as well as the amount of the margin.

Lenders sometimes offer a temporarily discounted interest rate for home equity lines – a rate that is unusually low and may last for only an introductory period, such as 6 months.

Variable-rate plans secured by a dwelling must, by law, have a ceiling (or cap) on how much your interest rate may increase over the life of the plan. Some variable-rate plans limit how much your payment may increase and how low your interest rate may fall if interest rates drop.
Some lenders allow you to convert from a variable interest rate to a fixed rate during the life of the plan, or to convert all or a portion of your line to a fixed-term installment loan.

Plans generally permit the lender to freeze or reduce your credit line under certain circumstances. For example, some variable-rate plans may not allow you to draw additional funds during a period in which the interest rate reaches the cap.

Costs of establishing and maintaining a home equity line. 
Many of the costs of setting up a home equity line of credit are similar to those you pay when you buy a home. 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
      credit limit)
    • Closing costs, including fees for 
      attorneys,  title search, and 
      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 annual membership 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. If you were to draw only a small amount against your credit line, those initial charges would substantially increase the cost of the funds borrowed. On the other hand, because the lender’s risk is lower than for other forms of credit, as your home serves as collateral, annual percentage rates for home equity lines are generally lower than rates for other types of credit. The interest you save could offset the costs of establishing and maintaining the line. Moreover, some lenders waive some or all of the closing costs.

How Will You Repay Your Home Equity Plan?
Before entering into a plan, consider how you will pay back the money you borrow. Some plans set minimum payments that cover a portion of the principal (the amount you borrow) plus accrued interest. But (unlike with the typical installment loan) the portion that goes toward principal may not be enough to repay the principal by the end of the term. Other plans may allow payment of interest alone during the life of the plan, which means that you pay nothing toward the principal. If you borrow $10,000, you will owe that amount when the plan ends.

Regardless of the minimum required payment, you may choose to pay more, and many lenders offer a choice of payment options. Many consumers 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, a little, or none of the principal amount of the loan – when the plan ends you may have to pay the entire balance owed, all at once. You must be prepared to make this “balloon payment” by refinancing 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, for example, that you borrow $10,000 under a plan that calls for interest-only payments. At a 10 percent interest rate, your monthly payments would be $83. If the rate rises over time to 15 percent, your monthly payments will increase to $125. Similarly, if you are making payments that 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 full immediately. If you are likely to sell your home in the near future, consider whether it makes sense to pay the up-front costs of setting up a line of credit.

Also keep in mind that renting your home may be prohibited under the terms of your agreement.

Lines of Credit vs. Traditional Second Mortgage Loans
If you are thinking about a home equity line of credit, you might also want to consider a traditional second mortgage loan. A second mortgage provides you with a fixed amount of money repayable over a fixed period. In most cases the payment schedule calls for equal payments that will pay off the entire loan within the loan period. You might consider a second mortgage instead of a home equity line if, for example, you need a set amount for a specific purpose, such as an addition to your home.

In deciding which type of loan best suits your needs, consider the costs under the two alternatives. Look at both the APR and other charges. Do not, however, simply compare the APRs 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 rate charged plus points and
     other finance charges.
    •The APR for a home equity line of 
     credit is based on the periodic interest
     rate alone. It does not include points or
     other charges.

Disclosures from Lenders
The federal Truth in Lending Act requires lenders to disclose the important terms and costs of their home equity plans, including the APR, miscellaneous charges, the payment terms, and information about any variable-rate feature. And in general, neither the lender nor anyone else may charge a fee until after you have received this information. You usually get these disclosures when you receive an application form, and you will get additional disclosures before the plan is opened. If any term (other than the variable rate feature) changes before the plan is opened, the lender must return all fees if you decide not to enter into the plan because of the change.

When you open a home equity line, the transaction puts your home at risk. If the home involved is your principal dwelling, the Truth in Lending Act gives you 3 days from the day the account was opened to cancel the credit line. This right allows you to change your mind for any reason. You simply inform the lender in writing within the 3-day period. The lender must then cancel its security interest in your home and return all fees – including any application and appraisal fees – paid to open the account.

GLOSSARY
Annual membership or maintenance fee - An annual charge for having the line of credit available. Charged regardless  of whether or not the line is used.
Annual percentage rate (APR) - The cost of credit on a yearlybasis expressed as a percentage.
Application fee - Fees that are paid upon application. May include charges for property appraisal and a credit report.
Balloon payment - A lump-sum payment that may be required when the plan ends.
Cap - A limit on how much the variable interest rate may increase during the life of the plan.
Closing costs - Fees paid at closing, including attorneys fees, fees for preparing and filing a mortgage, fees for title search, taxes, and insurance.
Credit limit - The maximum amount that may be borrowed under the home equity plan.
Equity - The difference between the fair market value (appraised value) of the home and the outstanding mortgage balance.
Index - Published rate that serves as a base for the interest rate charged on a home equity line and also as the base for rate changes used by the lender.
Interest rate - The periodic charge, expressed as a percentage, for use of credit.
Margin - The number of percentage points the lender adds to the index rate to determine the annual percentage rate.
Minimum payment - The minimum amount that you must pay (usually monthly) on your account. Under some plans, the minimum payment may cover interest only; under others, it may include both principal and interest.
Points - One point is equal to 1 percent of the amount of the credit line. Points must usually be paid at closing and are in addition to monthly interest.
Security interest - An interest that a lender takes in the borrower’s property to ensure repayment of a debt.
Transaction fee - A fee charged each time you draw on your credit line.
Variable rate - An interest rate that changes periodically 
in relation to an index. Payments may increase or decrease accordingly.

WHERE TO GO FOR HELP
The following federal agencies are responsible for enforcing the federal Truth in Lending Act, the law that governs disclosure of terms for home equity lines of credit. Questions concerning compliance with the act by a particular financial institution should be directed to the institution’s enforcement agency.

State Banks that Are Members
of the Federal Reserve System:
Division of Consumer and
Community Affairs
Mail Stop 801
Federal Reserve Board
Washington, D.C. 20551
(202) 452-3693
www.federalreserve.gov

National Banks:Office of the Comptroller of the Currency
Customer Assistance Unit
1301 McKinney St. Suite 3450
Houston, TX 77010
(800) 613-6743
www.occ.treas.gov

Federal Credit Unions:
National Credit Union  Administration Office of Public  and Congressional Affairs
1775 Duke St.
Alexandria, VA 22314
(703) 518-6330
www.ncua.gov

Federally Insured Non-Member
State-Chartered Banks and Savings Banks:
Federal Deposit Insurance Corporation
Consumer Response Center
2345 Grand Boulevard, Suite 100
Kansas City, MO 64108
(877) 275-3342
www.fdic.gov

Federally Insured Savings and Loan Institutions and Federally Chartered
Savings Banks:
Office of Thrift Supervision
Consumer Programs
1700 G Street, NW, 6th Floor
Washington, D.C. 20552
(202) 906-6237 or (800) 842-6929
www.ots.treas.gov

Mortgage Companies & Other Lenders Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, D.C. 20580
(202) 326-3758 or (877) FTC-HELP
www.ftc.gov

Dear Applicant:

Welcome to the InBank.  Attached is an application for our Home Equity Line of Credit.  Please don't be concerned by the application process.  It's not as difficult as it looks and we are always happy to help.  By completing this application package, you will have applied to borrow under the following program:

Up to 80% of the fair market value of your home, less the outstanding first mortgage balance.  The term of the loan shall be 7 years.  The interest rate shall be determined by your credit score, which we will obtain from Trans Union.

Program 1:  A Credit Score of 681 or above on all applicants qualifies for an APR floating at 0.50% PLUS the Index.

Program 2:  A Credit Score of 680 or below on any applicant qualifies for an APR floating at 1.0% PLUS the Index.

PLEASE NOTE: The annual percentage rate is based on the value of an index. The index currently is the Wall Street Journal prime rate (hereinafter referred to as the “Index”) and is available in the “Money Rates” section of the Wall Street Journal.

There will also be a $35.00 Annual Fee for this loan, which will begin after the first two years of the loan.

In order to qualify for this loan product, you must also open and maintain a demand deposit account(s) with Interstate with an average collected balance of not less than 5% of the loan amount.

You may also at one time during the draw period of this loan convert any portion of this line of credit ($10,000 minimum) to a fixed rate term loan.  The rate shall be fixed at the Index (Wall Street Journal Prime) at the time of conversion.  The monthly payment shall be a fixed principal and interest payment based on an amortization period not longer than 20 years, and a balloon payment due on the date of maturity of the subject Home Equity Line of Credit.  If you decide to use this feature, you will be required to sign additional loan documentation at that time.  There will be no fees or costs associated with the option.

Please provide all the information on the application and in the box titled “Improvements Planned…” give a brief description of the work to be done.  If the funds are not being used for home improvement, please state the intended use of the loan proceeds (for example: debt consolidation, tuition, vacation, etc.)

The remainder of the application, both front and back, should be completed as accurately as possible.  Please remember to sign the back of the application where it is appropriate.

Please return the completed Application along with the following:

•	Two years Income Tax Returns (all schedules) with W-2's
•	One Month Current Pay Stubs
•	Two years Business Tax Returns (all schedules), if applicable
•	Statement from 1st Mortgage Holder showing Principal Balance Owed
•	Copies of three months of Bank Statements for any deposit account held at another Financial Institution
•	Copy of Insurance Declarations page or name and number of insurance agent

Attached to the application is the disclosure statement explaining the terms of our loan.  Please do not hesitate to call our loan Representatives for details about the InBank Home Equity Loan.

If you ask, we will provide you with information on our other available home equity lines.  We also offer a fixed rate Home Equity Loan, just ask for details.  We value you as a customer and welcome the opportunity to be of service.

Sincerely,
Eileen Turner
Eileen Turner
Branch Manager

IMPORTANT TERMS OF OUR HOME EQUITY LINE OF CREDIT

This disclosure contains important information about our Home Equity Line of Credit Plan.  You should read it carefully and keep a copy for your records.

Availability of Terms:  All of the terms described below are subject to change.

If any of these terms change (other than the annual percentage rate) and you decide, as a result, not to enter into an agreement with us, you are entitled to a refund of any fees that you paid in connection with your application.

Security Interest:  We will take a mortgage in your home.  You could lose your home if you do not meet the obligations in your agreement with us.

Possible Actions:  Under certain circumstances, we can terminate your line, require you to pay us the entire outstanding balance in one payment, charge you certain fees, and make specific changes that are set forth in your agreement with us, if:

You engage in fraud or material misrepresentation in connection with the Line.

You do not meet the repayment terms.

Your action or inaction adversely affects the collateral or our rights in the collateral.

We can refuse to make additional extensions of credit or reduce your credit limit if:

The value of the dwelling securing the line declines significantly below its appraised value for purposes of the line.

We reasonably believe you will not be able to meet the repayment requirements due to a material change in your financial circumstances.

You are in default of a material obligation in the agreement.

Government action prevents us from imposing the annual percentage rate provided for or impairs our security interest such that the value of the interest is less than 120 percent of the credit line.

A regulatory agency has notified us that continued advances would constitute an unsafe and unsound practice.

The maximum annual percentage rate is reached.

The initial agreement permits us to make certain changes to the terms of the agreement at specified times or upon the occurrence of specified events.

Minimum Payment Requirements:  You can obtain credit advances for 7 years (the "draw period").  When you open your account, you will make monthly payments of interest during the draw period.  Your monthly payment will equal the finance charges that accrued during the preceding month.  The minimum payment will be computed upon the daily average balance of your account during the month for which you are billed.

Under the monthly payment plan, the minimum payment during the draw period will not reduce the principal that is outstanding on your account.  This means that in month 84 (assuming that you have made no principal payments) you will owe a balloon payment equaling the full amount you have borrowed under the plan.

After the draw period ends, you will no longer be able to obtain credit advances and must repay the outstanding balance on your account.

Minimum Payment Example:  Your payments must be made monthly.

Program 1:  If you took a credit advance of $10,000.00 and you made the minimum payment of interest only and took no other credit advances, you would have a balloon payment of principal in month 84 of $10,000.00 represented by a credit advance of $10,000.00.  You would make 83 monthly interest payments of $45.83 if your interest rate were 5.5% (.50% above the Index, assuming its rate is presently 5.0%).  Your balloon payment in month 84 would be the $10,000.00 in principal plus the $45.83 interest payment.

Program 2:  If you took a credit advance of $10,000.00 and you made the minimum payment of interest only and took no other credit advances, you would have a balloon payment of principal in month 84 of $10,000.00 represented by a credit advance of $10,000.00.  You would make 83 monthly interest payments of $50.00 if your interest rate were 6.0% (1.0% above the Index, assuming its rate is presently 5.0%).  Your balloon payment in month 84 would be the $10,000.00 in principal plus the $50.00 interest payment.

Fees and Charges:  To open and maintain a line of credit, you must pay us the following fees:

You will be charged an annual fee of $35.00 to begin at the beginning of the third year of this loan, and then annually while your Credit Line account is open.

You will be charged an advance access fee of $4.00 for each advance.

You will be responsible for any double billing of appraisal, recording fees or title charges incurred due to a mistake or omission on your part or a change in titleholder instituted at your request.

In the event that you should pay this line of credit off through refinancing at another bank within two years of the date of this loan, you shall be responsible for all title charges, recording fees, survey charges and appraisal charges assessed by third parties in processing this loan.

You may be charged $50.00 if you pay your Credit Line obligations with a check, draft, or other item that is dishonored for any reason, unless applicable law requires a lower charge or prohibits any charge.

Your Credit Line account may be charged $25.00 when you request a stop payment on your account.

Your Credit Line account may be charged $25.00 if you cause your Credit Line account to go over your Credit Limit.  This includes writing a Home Equity Check in excess of your available balance.

If you request a copy of any document, we may charge your Credit Line account $.50 per page for the time it takes us to locate, copy, and mail the document to you.  If your request is related to a billing error and an error is found, we will reverse any photocopying charges.

If you request research on your Credit Line account, you may be charged $25.00 per hour ($10.00 minimum).

If your payment is not received by us within 10 days after the “Payment Due Date” shown on your periodic statement, we may charge you 5.0% of the payment or $10.00, whichever is greater.

If the loan is in excess of $100,000, Borrower(s) will be responsible for title, recording fees, flood certification fees and appraisal fees as charged by third parties, which can range from $450.00 to $1,500.00.  Upon request, we can provide you with an estimate of these third party charges.

Property Insurance.  Property Insurance on the subject property is required with InBank added as mortgagee.

Tax Deductibility:  You should consult a tax advisor regarding the deductibility of interest and charges under the plan.

Variable-Rate Feature:  The plan has a variable-rate feature, and the annual percentage rate (corresponding to the periodic rate) and the minimum monthly payment can change as a result.

The annual percentage rate includes only interest and not other costs.

The annual percentage rate is based on the value of an index.  During the draw period the index is the Wall Street Journal Prime Rate.  To determine the annual percentage rate that will apply to your account, we add a margin to the value of the index.

Ask us for the current index value, margin and annual percentage rate.  After you open an account, rate information will be provided on periodic statements that we send you.

Rate Changes:  The annual percentage rate will change as the Index changes.  The maximum annual percentage rate that can apply is 25%.  Apart from this rate “cap”, there is no limit on the amount by which the rate can change during any one-year period.

Maximum Rate and Payment Examples:  Under this monthly payment plan, if you had an outstanding balance of $10,000.00 at the beginning of the draw period, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 25% would be $208.34.

This annual percentage rate could be reached during the first month of the draw period.

Historical Example:  The following tables show how the annual percentage rate and the monthly payments for a single $10,000.00 credit advance would have changed based on changes in the index over the last 15 years.  The index values are from December of each year.

Deposit Account Requirement:  This loan is subject to you maintaining a demand deposit account(s) with Interstate with an average collected balance of not less than 5% of the loan amount.

The tables assume that no additional credit advances were taken, that only the minimum payments were made, and that the rate remained constant during each year.  It does not necessarily indicate how the index or your payments will change in the future.

Year			Index		Margin		Annual	Minimum
			 (%)	 	(%) 	 	Percentage	Monthly
						              Rate		Payment
                                                                                                                                                     
1993			 6.00	 	+.50		 6.50		  54.17

1994			 8.50	 	+.50		 9.00		  75.00

1995 		 	 8.75	   	+.50		 9.25		  77.08

1996    		               8.25		+.50		 8.75		  72.92

1997 			 8.50		+.50		 9.00		  75.00

1998			 7.75		+.50		 8.25		  68.75

1999			 8.50		+.50		 9.00		  75.00

2000			 9.50		+.50		10.00		  83.33

2001			 4.75		+.50		 5.25		  43.75

2002			 4.25		+.50		 4.75		  39.58

2003			 4.00		+.50		 4.50		  37.50

2004			 5.00		+.50		 5.50		  45.83

2005			 7.25		+.50		 7.75		  64.58

2006			 8.25		+.50		 8.75		  72.92

2007			 7.25	 	+.50		 7.75		  64.58

This is a margin we have used recently.

VARIABLE RATE EXAMPLE – PROGRAM 2

Year			Index		Margin		Annual	Minimum
			 (%)	 	(%) 	 	Percentage	Monthly
						              Rate		Payment
                                                                                                                                                     
1993			 6.00	 	+1.0		 7.00		  58.33

1994			 8.50	 	+1.0		 9.50		  79.17

1995 		 	 8.75	   	+1.0		 9.75		  81.25

1996    		               8.25		+1.0		 9.25		  77.08

1997 			 8.50		+1.0		 9.50		  79.17

1998			 7.75		+1.0		 8.75		  72.92

1999			 8.50		+1.0		 9.50		  79.17

2000			 9.50		+1.0		 10.5		  87.50

2001			 4.75		+1.0		 5.75		  47.92

2002			 4.25		+1.0		 5.25		  43.75

2003			 4.00		+1.0		 5.00		  41.66

2004			 5.00		+1.0		 6.00		  50.00

2005			 7.25		+1.0		 8.25		  68.75

2006			 8.25		+1.0		 9.25		  77.08

2007			 7.25	 	+1.0		 8.25		  68.75

This is a margin we have used recently.

NOTICE OF AVAILABILITY OF APPRAISAL

Upon written request, you are entitled to a copy of the appraisal report used in connection with your application for credit secured by a lien on your home. Please forward your request to:

InBank
15533 S. Cicero Ave.
Oak Forest, Illinois 60452

This appraisal must be mailed or delivered within 30 days after we receive your request or the report, or reimbursement from you for the report, whichever is later. We need not provide the report when your request is received more than 90 days after we have provided you with notice of the action taken on the application or 90 days after the application is withdrawn.

PRIVACY		PRIVACY		PRIVACY	
NOTICE OF YOUR FINANCIAL
PRIVACY RIGHTS 
We, our, and us, when used in this notice, mean InBank. 
This is our privacy notice for our customers. When we use the words "you" and "your" we mean the following types of customers: 
•	Our consumer customers who have a continuing relationship by purchasing or holding financial products or services such as a(n): 
•	Deposit account 
•	Loan account 
•	Safe deposit box 
•	Self-directed Individual Retirement Account 
We will tell you the sources of the information we collect about you. We will tell you what measures we take to secure that information. 
We first define some terms. 
Nonpublic personal information means information about you that we collect in connection with providing a financial product or service to you. Nonpublic personal information does not include information that is available from public sources, such as telephone directories or government records. Hereafter, we will use the term "information" to mean nonpublic personal information as defined in this section. 
An affiliate is a company we own or control, a company that owns or controls us, or a company that is owned or controlled by the same company that owns or controls us. Ownership does not mean complete ownership, but means owning enough to have control. 
A nonaffiliated third party is a person we do not employ or a company that is not an affiliate of ours. This is also known as nonaffiliated third party, or simply, an "other party." 
THE INFORMATION WE COLLECT 
We collect information about you from the following sources: 
•	Information you give us on applications or other forms 
•	Information about your transactions with us 
•	Information about your transactions with other parties 
•	Information from a consumer reporting agency 
•	Information we receive as a result of verifying customer information 
INFORMATION WE DISCLOSE ABOUT YOU 
We do NOT disclose any information about you to anyone, except as permitted by law. Examples of this might include disclosures necessary to service your account or prevent unauthorized transactions. 
THE CONFIDENTIALITY, SECURITY, AND INTEGRITY
OF YOUR INFORMATION 
We restrict access to information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards to protect this information. 
INFORMATION ABOUT FORMER CUSTOMERS 
We do not disclose information about former customers, except as permitted by law. 
Joint Marketing/Service Provider Disclosure
We may disclose the following information to companies that perform marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements:
 
•	Information we receive from you on applications or other forms, such as your name, address, social security number, assets, income; 
•	Information about your transactions with us, our affiliates, or others, such as your account balance, payment history, and parties to transactions.

You do not have a right to opt out of the disclosure of this information.

I Agree to the terms of the above disclosure

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