Fill and Sign the Revolving Line of Credit Template Form

Mortgage Loan Commitment for Home Equity Line of Credit (Letterhead of Lender) _________________________ (Date) _________________________________ (Name of Mortgagor) _______________________________________________________ (Street Address or Po st Office Box Number) _______________________________________________________ City, State, Zip Code) Re: Your Application for Home Equity Line of Credit Secured by Property at the Address Set Forth Above Dear ______________________________________ (Name of Mortgagor) It is a pleasure to notify you that your application for a line of credit secured by a mortgage covering the above-cap tioned property address (the Property) has been approved by ________________________________________ (Name of Mortgagee) (the Lender ), subject to the following terms and conditions: A. Loan Amount and Terms 1. Amount of Loan: $__________________ (dollar amount); 2. Initial Annual Perc entage Rate: ________ %; 3. Principal and Interest Payment: Interest only payments required (amounts will vary); 4. Term: _______ (number) months 5. Margin: ________% (added to the highest Wall Street Journal Prime Rate). The above stated Annua l Percentage Rate is the Initial Annual Percentage Rate only and it, together with your Minimum Payment, will be adjusted as set forth in the Home Equity Loan Disclosures given to you at the time of your Credit Line Application. 6. Additional Terms: (a) Prepayment Premium: (none) (b) Annual Fee: $_______________________ (dollar amount) per year after ________ (number) months, unless __________% or greater outstanding balance maintained for previous 12 months. B. Additional Required Items or Conditions All items below apply and all documentation must be provided to the Lender at or prior to the Closing Date in form, substance and ex ecution satisfactory to the Lender. Disbursement of proceeds may be delayed if these items are not provided by closing or do not satisfy Lender’s criteria: (List additional required items and conditions) ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ C. Commitment Expiration Date This commitment shall expire at the close of business ______ (number) days after the date of this commitment letter (the Closing Date). D. Evidence of Title Evidence of the status of tit le must be provided to the Lender and must indicate no liens, encumbrances, or any adverse c ovenants or conditions to title to the Property unless approved by the Lender. Evidence of title must be i ssued from a firm or source and in a form acceptable to the Lender. E. Fire and Extended Coverage Insurance On the Closing Date the Borrower must provide Lender with an original insurance policy insuring the Property against loss by fire and hazards included within the term extended coverage in an amount at least equal to the greater of the Amount of the Loan plus the amount of any outstanding loan balances on the Property or full replacement cost of the Property. The insurance policy must: (i) be accompanied by a receipt showing the premium paid in advan ce for one year; (ii) contain a standard mortgage clause in favor of the Lender as follows : _______________________________ (Name of Mortgagee) , its successors and/or assigns, as their interest may appear, _________________________________________________________________________________________________ (address of mortgagee); and (iii) at all times and in all respects, otherwise be in form, substance and sufficiency of amount and type of coverage and be issued by an insurance carrier acceptable to the Lender. F. Flood Insurance If the Property is determined to be located in an area which has a special flood hazard, you will receive a separate form called Notice to Borrower of Special Flood Hazard and Federal Disaster Assistance and flood insurance will be required as a condition of your Loan. Federal law requi res that flood insurance covering the Property, available through an insurance agent of your choice, be written in either the maximum amount available or the Amount of the Loan plus the amount of any outstanding loan balances on the Property, whichever is the lesser. This insurance will be required until the Loan is paid in full. The insurance policy must: (i) be accompanied by a receipt showing the premium paid in advance for one year; and (ii) contain a standard mortgage clause in favor of the Lender as set forth above in Fire and Extended Coverage Insurance. G. Appraisal Receipt of an appraisal of the Property that must be prepared by an appraiser acceptable to Lender and which must in all respects be in form, substance and execution satisfactory to Lender. H. Non-Assignment of Commitment This Commitment is made exclusively to the Borrower and is neither assignable nor transferable voluntarily or involuntarily by the Borrower. I. Cancellation Lender reserves the right to terminate this Commitment at any time prior to the Closing Date in the event of an adverse change in the personal or financial status of Borrower, or if the improvements on the Property are damaged by fire or other casualty. The establishment of the Line of Credit account is subject to: (1) the signing of all loan documents by all applicants; (2) if applicable, the signing of the mortgage by a non- applicant spouse if his/her signature is required under state law to create a valid lien, pass clear title, or waive inchoate rights to the Property; and (3) the proper filing of the mortgage without any intervening mo rtgages, liens or judgments on the Property other than the first mortgage or the Lender’s second mortgage that may have been disclosed on your loan application. Sincerely yours, ____________________________________ (Name of Lender) By: ________________________________ ____________________________________ (Printed Name & Office in Corporation) ____________________________________ (Signature of Officer)