Adjustable Rate Mortgage Program Disclosure

(This is neither a contract nor a commitment to lend.)

Glenview State Bank

LENDER: Glenview State Bank, Illinois Corporation

This disclosure describes the features of our variable rate mortgage ("Adjustable Rate Mortgage" or "ARM") programs.

Glenview State Bank offers several Adjustable Rate Mortgages. The sections titled " How Your Interest Rate and Payment are Determined " and " Additional Features of Your Adjustable Rate Mortgage Program " apply to all programs; the remaining sections describe each individual program.

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED

These types of ARM loans carry a provision for a change in the Interest Rate and the Monthly Payment. Your Interest Rate will be based on an Index plus a Margin. Your payment will be based on the Interest Rate, loan balance and loan term.

• Your Interest Rate will be equal to the Index (the 1 Year Constant Maturity Treasury rate, or CMT) plus our Margin, unless your Interest Rate “Caps” limit the amount of the change in the Interest Rate. The initial Interest Rate is not based on the Index used to make later adjustments and is higher than the Index plus Margin used to make later adjustments. Ask us about the current initial Interest Rate, current value of the Index, current Interest Rate caps, and Margin for these products. This information is also available on our website.
• The Index used to determine adjustments to your Interest Rate, the 1-Year Constant Maturity Treasury, is the weekly average yield on U.S. Treasury Securities adjusted to a constant maturity of one year. Information about the Index can be found in the published Federal Reserve Statistical Release (H.15). This information is available on their website at www.federalreserve.gov/releases/h15/update.

ADDITIONAL FEATURES OF YOUR ADJUSTABLE RATE MORTGAGE PROGRAM

Someone buying this property cannot assume the remaining balance due under original mortgage terms.

This Adjustable Rate Mortgage Program Disclosure does not have a Demand Feature.

 

ADJUSTABLE RATE MORTGAGE PROGRAM:
3/1 ARM Non-Convertible Conventional Loan

HOW YOUR INTEREST RATE CAN CHANGE

• Your interest rate can change after 36 months (the initial adjustment) and every 12 months thereafter (a periodic adjustment).
• Your interest rate cannot increase or decrease more than 2.000 percentage points at the initial adjustment.
• Your interest rate cannot increase or decrease more than 2.000 percentage points at each periodic adjustment.
• Your interest rate cannot increase or decrease more than 6.000 percentage points over the term of the loan.

NOTE: Your interest rate will be rounded off to the nearest 0.125% at each adjustment.

 

HOW YOUR PAYMENT CAN CHANGE

Your monthly payment can increase or decrease substantially based on annual changes in the interest rate.

You will he notified in writing 45 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount and loan balance. Any increase in interest will take the form of a higher payment amount.

EXAMPLE FOR LOANS UP TO $417,000: On a $10,000, 30 year loan with an initial interest rate of 3.875%, in effect in October, 2011 , the maximum amount that the interest rate can rise under this program is 6.000 percentage points, to 9.875 %, and the monthly payment can rise from a first-year payment of $ 47.02 to a maximum of
$82.59 in the Sixth year. To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $ 60,000.00 would be: $ 60,000.00 ÷ $10,000 = 6; 6 x $ 47.02 = $ 282.12 per month.)

 

ADJUSTABLE RATE MORTGAGE PROGRAM:
3/1 ARM Non-Convertible Jumbo Loan

HOW YOUR INTEREST RATE CAN CHANGE

• Your interest rate can change after 36 months (the initial adjustment) and every 12 months thereafter (a periodic adjustment).
• Your interest rate cannot increase or decrease more than 2.000 percentage points at the initial adjustment.
• Your interest rate cannot increase or decrease more than 2.000 percentage points at each periodic adjustment .
• Your interest rate cannot increase or decrease more than 5.000 percentage points over the term of the loan.

NOTE: Your interest rate will be rounded off to the nearest 0.125% at each adjustment.

HOW YOUR PAYMENT CAN CHANGE

Your monthly payment can increase or decrease substantially based on annual changes in the interest rate.

You will he notified in writing 45 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount and loan balance. Any increase in interest will take the form of a higher payment amount.

EXAMPLE FOR LOANS OVER $417,000: On a $10,000, 30 year loan with an initial interest rate of 4.125% , in effect in October, 2011, the maximum amount that the interest rate can rise under this program is 5.000 percentage points, to 9.125%, and the monthly payment can rise from a first-year payment of $48.46 to a maximum of $78.08 in the sixth year. To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $ 60,000.00 would be: $ 60,000.00 ÷ $10,000 = 6; 6 x $48.46 = $290.79 per month.)

 

 

ADJUSTABLE RATE MORTGAGE PROGRAM:
5/1 ARM Non-Convertible Conventional Loan

HOW YOUR INTEREST RATE CAN CHANGE

• Your interest rate can change after 60 months (the initial adjustment) and every 12 months thereafter (a periodic adjustment).
• Your interest rate cannot increase or decrease more than 2.000 percentage points at the initial adjustment.
• Your interest rate cannot increase or decrease more than 2.000 percentage points at each periodic adjustment .
• Your interest rate cannot increase or decrease more than 5.000 percentage points over the term of the loan.

NOTE: Your interest rate will be rounded off to the nearest 0.125% at each adjustment.

HOW YOUR PAYMENT CAN CHANGE

Your monthly payment can increase or decrease substantially based on annual changes in the interest rate.

You will he notified in writing 45 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount and loan balance. Any increase in interest will take the form of a higher payment amount.

EXAMPLE FOR LOANS UP TO $417,000: On a $10,000, 30 year loan with an initial interest rate of 4.000%, in effect in October, 2011 , the maximum amount that the interest rate can rise under this program is 5.000 percentage points, to 9.000 %, and the monthly payment can rise from a first-year payment of $ 47.74 to a maximum of
$75.24 in the eighth year. To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $ 60,000.00 would be: $ 60,000.00 ÷ $10,000 = 6; 6 x $ 47.74 = $ 286.44 per month.)

 

ADJUSTABLE RATE MORTGAGE PROGRAM:
5/1 ARM Non-Convertible Jumbo Loan

HOW YOUR INTEREST RATE CAN CHANGE

• Your interest rate can change after 60 months (the initial adjustment) and every 12 months thereafter (a periodic adjustment).
• Your interest rate cannot increase or decrease more than 5.000 percentage points at the initial adjustment.
• Your interest rate cannot increase or decrease more than 2.000 percentage points at each periodic adjustment .
• Your interest rate cannot increase or decrease more than 5.000 percentage points over the term of the loan.

NOTE: Your interest rate will be rounded off to the nearest 0.125% at each adjustment.

HOW YOUR PAYMENT CAN CHANGE

Your monthly payment can increase or decrease substantially based on annual changes in the interest rate.

You will he notified in writing 45 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount and loan balance. Any increase in interest will take the form of a higher payment amount.

EXAMPLE FOR LOANS OVER $417,000: On a $10,000, 30 year loan with an initial interest rate of 4.250%, in effect in October, 2011 , the maximum amount that the interest rate can rise under this program is 5.000 percentage points, to 9.250 %, and the monthly payment can rise from a first-year payment of $ 49.19 to a maximum of
$77.77 in the sixth year. To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $ 60,000.00 would be: $ 60,000.00 ÷ $10,000 = 6; 6 x $ 49.19 = $ 295.14 per month.)

 

ADJUSTABLE RATE MORTGAGE PROGRAM:
7/1 ARM Non-Convertible Conventional Loan

HOW YOUR INTEREST RATE CAN CHANGE

• Your interest rate can change after 84 months (the initial adjustment) and every 12 months thereafter (a periodic adjustment).
• Your interest rate cannot increase or decrease more than 5.000 percentage points at the initial adjustment.
• Your interest rate cannot increase or decrease more than 2.000 percentage points at each periodic adjustment
• Your interest rate cannot increase or decrease more than 5.000 percentage points over the term of the loan.

NOTE: Your interest rate will be rounded off to the nearest 0.125% at each adjustment.

HOW YOUR PAYMENT CAN CHANGE

Your monthly payment can increase or decrease substantially based on annual changes in the interest rate.

You will he notified in writing 45 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount and loan balance. Any increase in interest will take the form of a higher payment amount.

EXAMPLE FOR LOANS UP TO $417,000: On a $10,000, 30 year loan with an initial interest rate of 4.125% , in effect in October, 2011, the maximum amount that the interest rate can rise under this program is 5.000 percentage points, to 9.125%, and the monthly payment can rise from a first-year payment of $48.46 to a maximum of $74.88 in the eighth year. To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $ 60,000.00 would be: $ 60,000.00 ÷ $10,000 = 6; 6 x $48.46= $290.76 per month.)

ADJUSTABLE RATE MORTGAGE PROGRAM:
7/1 ARM Non-Convertible Jumbo Loan

HOW YOUR INTEREST RATE CAN CHANGE

• Your interest rate can change after 84 months (the initial adjustment) and every 12 months thereafter (a periodic adjustment).
• Your interest rate cannot increase or decrease more than 5.000 percentage points at the initial adjustment.
• Your interest rate cannot increase or decrease more than 2.000 percentage points at each periodic adjustment
• Your interest rate cannot increase or decrease more than 5.000 percentage points over the term of the loan.

NOTE: Your interest rate will be rounded off to the nearest 0.125% at each adjustment

 

HOW YOUR PAYMENT CAN CHANGE

Your monthly payment can increase or decrease substantially based on annual changes in the interest rate.

You will he notified in writing 45 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount and loan balance. Any increase in interest will take the form of a higher payment amount.

EXAMPLE FOR LOANS OVER $417,000: On a $10,000, 30 year loan with an initial interest rate of 4.625% , in effect in October, 2011, the maximum amount that the interest rate can rise under this program is 5.000 percentage points, to 9.625%, and the monthly payment can rise from a first-year payment of $51.41 to a maximum of $78.66 in the eighth year. To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $ 60,000.00 would be: $ 60,000.00 ÷ $10,000 = 6; 6 x $51.41= $308.46 per month.)

 

ADJUSTABLE RATE MORTGAGE PROGRAM:
10/1 ARM Non-Convertible Conventional Loan

HOW YOUR INTEREST RATE CAN CHANGE

• Your interest rate can change after 120 months (the initial adjustment) and every 12 months thereafter (a periodic adjustment).
• Your interest rate cannot increase or decrease more than 5.000 percentage points at the initial adjustment.
• Your interest rate cannot increase or decrease more than 2.000 percentage points at each periodic adjustment
• Your interest rate cannot increase or decrease more than 5.000 percentage points over the term of the loan.

NOTE: Your interest rate will be rounded off to the nearest 0.125% at each adjustment

HOW YOUR PAYMENT CAN CHANGE

Your monthly payment can increase or decrease substantially based on annual changes in the interest rate.

You will he notified in writing 45 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount and loan balance. Any increase in interest will take the form of a higher payment amount.

EXAMPLE FOR LOANS UP TO $417,000: On a $10,000, 30 year loan with an initial interest rate of 4.375% , in effect in October, 2011, the maximum amount that the interest rate can rise under this program is 5.000 percentage points, to 9.375%, and the monthly payment can rise from a first-year payment of $49.93 to a maximum of $73.70 in the eleventh year. To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $ 60,000.00 would be: $ 60,000.00 ÷ $10,000 = 6; 6 x $49.93= $299.58 per month.)