IMPORTANT INFORMATION ABOUT THE ADJUSTABLE RATE MORTGAGE LOAN 5/1 YEAR ARM LIBOR INDEX This disclosure describes the features of the adjustable-rate mortgage (ARM) program you are considering. information on other ARM programs is available upon request. This disclosure statement is not a contract and does not constitute @ commitment to make a joan to you, What is an Adjustable Rato 2 ‘An ARM is a foan in which the interest rate and monthly payment (principal and interest) may change over the life of your foan. ff the interest rate increases from the time you make your loan, your monthly payment will increase. if the interest Fate decreases, your monthly payment will decrease. How Your Interest Rate and Payment Are Determined: * Your interest rate will be based on an index rafé, plus a margin rounded to the nearest 0.125%. * The margin is expressed as a percentage figure and will remain the same throughout the loan. * Your margin will be 2.25%, Your payment will be based on the interest rate, loan balance, and remaining loan term, * The index is the average of interbank offered rates for one-year U.S. dollar-denominated deposits in the London ‘market ("LIBOR’), plus our margin rounded to the nearest 0.125%, Ask us for our current interest rate * Information about the index rate is published in the "Wall Street Journal.” * Your interest rate will equal the index plus margin, rounded fo the nearest 0.125%, unless your interest rate “caps” limit the amount of change in the interest rate * Your initial interest rate is not based on the index used to make later adjustments, * If the initial interest rate is below the sum of the then current index plus margin (the “fully indexed rate"), then the intial interest rate will be a "discounted" interest rate, * If the initial interest rate is above the fully indexed rate, then it will be a "premium interest rate, Please ask us for the ‘amount of our current interest rate discounts and premiums, How Your Interest Rate Can Change: * The first adjustment to your interest rate will occur no sooner than 60 months after closing. Subsequent adjustments May occur once each year after the first adjustment. * You will be notified in writing at least 210, but not more than 240 days before the first payment at the adjusted level is due. ©. Your inital interest rate adjustment could increase or decrease as much as 2.0%. © Your interest rate will not increase or decrease by more than 2.0% at each adjustment, © Your interest rate will not increase or decrease by more than 5.0% over the term of your loan, 5-1 LIBOR ARM (27215 Caps) Page 1 of 2 Revised 0412014