(FMS- Mortgage Package- 19 October 2011)

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Marsha Gaines
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2 Greetings From Constellation s Loan Team! Thank you for your interest in Constellation Federal Credit Union s mortgage program. We can help you buy or refinance your primary, secondary, or vacation home anywhere in the United States! Program Highlights: No Loan Underwriting fees* No Escrow/PMI (private mortgage insurance)** No Broker/Licensing fees Optional Points (rates or without points) We process your mortgage payments Automatic payments No prepayment penalties FREE 45-day rate lock Settlement can be arranged at your home (metro area) About the Fees: *We do not charge fees for underwriting the loan; application, processing, credit, flood, or licensing fees. Fees associated with the loan; appraisal, title, and recording fees) may be rolled into your loan amount on a refinance. **Rather than escrowing, we will help you set up a 'dividend bearing' account to save for taxes and insurance. You should receive a good faith estimate within three days of the receipt of your completed application. Meet the Loan Team: Audrey Hastings-Spaine (ext. 1206), Angella Williams (ext. 1207), or Betty Middlebrooks (ext. 1204) at or loandepartment@constellationfcu.org for further information. Thank you for using your credit union! Equal Housing Lender

Program Highlights: No Loan Underwriting fees* No Escrow/PMI (private mortgage insurance)** No Broker/Licensing fees Optional Points (rates or without points) We process your mortgage payments

3 Constellation FCU Mortgage Plans NEW MINI MORTGAGE The Mini-Mortgage lets you refinance for up to fifteen years with NO CLOSING COSTS! This is a fixed-rate mortgage which means your payment will never change. You may choose payment terms ranging from five to fifteen years. You may choose bi-weekly payments with this product only. We can use your current county tax assessment or a recent appraisal (12 months) to assess the equity in your home. Loans over 250k require an appraisal. We pay all the closing costs as long as the loan is financed with CFCU for two years. Limit 400k/70%/80%. 15 YEAR FIXED RATE MORTGAGE Some of our members have paid down a substantial amount of principal on their mortgages over the years. You may benefit from refinancing your existing mortgage balance at today s low rates. If your payments are still based on your old purchase amount, your payments may go down by refinancing your existing loan balance. The closing costs on a refinance will be considerably less than closing costs from your purchase. With this plan, your interest rate and payments will never change. You can choose a rate with or without points. Limit 417k/70%/80% 30 YEAR FIXED RATE MORTGAGE Purchase or refinance your primary residence with affordable monthly payments amortized over thirty years. With this plan, your interest rate and payments will never change. When you refinance with CFCU, you save money on underwriting fees. We do not charge typical lender fees; credit, application, brokerage, or mortgage insurance premiums. Rather than escrowing for taxes and insurance, we can help you set up a free dividend-bearing savings account. Limit 417k/70%/80% NEW 5/5 ADJUSTABLE RATE MORTGAGE PLAN Our most recent plan locks in your rate and payment every five years. There are no surprises, from year-to-year, over your payment amount. The maximum your rate can rise in ten years is 2% over your initial rate and 5.00% (over initial rate) over the life of the loan. Example: If the initial mortgage rate is 3.50%, the maximum the interest rate can rise, in ten years, is 5.50%. It will never go above 8.50%. Benefits; the initial interest rate is very low, there are no points, and the loan limits are higher. Limit 850k/70%/80%. Index: Wall Street Journal Libor/ Margin: 2.75%

We can use your current county tax assessment or a recent appraisal (12 months) to assess the equity in your home. Loans over 250k require an appraisal.

4 5/1 Adjustable Rate Mortgage (ARM) We know that one plan does not suit everyone. We offer different mortgage plans to accommodate the housing needs of many members. If you only plan to occupy your residence for a short period of time due to; retirement, relocation, or temporary assignment, then an adjustable rate mortgage may be rightfor you. This plan guarantees a fixed rate and payment over the next five years. Because the interest rate is only fixed for a short period, the credit union can offer it at a lower rate. There are advantages; there are no points, the interest rate is lower, and the loan limit is higher! If your situation changes and you decide to stay in your home longer, you can refinance, without any penalties. Limits 850k/70%/80%; This plan has rate caps which limit the amount of interest adjustments. Index (Wall Street Journal Libor); Margin (2.750%); Annual/Life caps (2.00%/5.00%) 7/1 Adjustable Rate Mortgage We know that one plan does not suit everyone. We offer different mortgage plans to accommodate the housing needs of many members. If you only plan to occupy your residence for a short period of time due to; retirement, relocation, or a temporary assignment, then an adjustable rate plan may be right for you. This plan guarantees a fixed rate and payment over the next seven years. Because the interest rate is only fixed for seven years, the 'rate' is lower. There are some advantages to this plan; there are no points, the interest rate is lower, and the loan limit is higher! If your situation changes and you decide to stay in your home longer, you can refinance without penalties. Limits 850k/70%/80%; This plan has rate caps which limit the amount of interest adjustments. Index (Wall Street Journal Libor); Margin (2.750%); Annual/Life caps (2.00%/6.00%) Hubble Equity Line of Credit If you need more than 80% of the value of your home, you may be able to qualify for a home equity line of credit up to 95%. Conditions apply. See a loan officer. Pay as you go with the Hubble Equity Line of Credit. The Hubble has an INTRODUCTORY rate of 3.00% APR until June 30, 2012 *(New Money Only) With the Hubble, you only pay for what you borrow. Your may borrow from your credit line over and over. Enjoy affordable monthly payments which are amortized over twenty years. There is no prepayment penalty. The Hubble has a variable interest rate which is tied to the Wall Street Prime with a Margin of 0%. After 06/30/2012, the rate will adjust each quarter. The quarterly rate will not increase more than 2.00% in a year and the lifetime rate will never go over 14.00%. The lowest the rate will ever be is 4.00%. Limit 450k/85%/90%/95% For all plans; Conditions may apply. Please contact a loan officer for details. See the daily mortgage rate schedule. Loan limits may apply for cash out and certain refinance transactions.

This plan guarantees a fixed rate and payment over the next five years. Because the interest rate is only fixed for a short period, the credit union can offer it at a lower rate.

5 The Document Checklist Let s get started! In order to process your request, we need the following information. Please submit the following within the next three (3) business days. How to apply: The online loan application is the fastest way to expedite and track your request. The mortgage application is available online. Just login and click on Mortgage Loan. Click Apply Now to set up a user name and password to apply and make updates to your application. You will receive a receipt confirmation. Request for information: Two (2) recent paystubs (all borrowers) Most recent W-2 form Copy of home insurance Copy of mortgage statement (non-cfcu loans) Appraisal Order Request (attached) Additional documents may be requested FREE rate lock 45 days from completed application Where to forward your documents: Scan your documents to loandepartment@constellationfcu.org ; add subject line (Attn: Mortgages) or Fax copies to (Attn: Mortgages) Know Your Rights: You are entitled to the following; a good faith estimate of the closing costs within three business days, a copy of your credit score, and a copy of the appraisal for this transaction. We are required to provide you with information on the following when applicable; Buying Your Home, Adjustable Rate Mortgage, Home Equity Line of Credit.

Click Apply Now to set up a user name and password to apply and make updates to your application. You will receive a receipt confirmation.

6 Appraisal Order Request You are entitled to receive a copy of the appraisal report. Owner s Name / Member Number Property Address Contact for Appointment Daytime Number PAYMENT AUTHORIZATION & ACKNOWLEDGEMENT I authorize Constellation FCU to order an appraisal for the subject property above. I understand that the amount stated below is an estimated cost and that actual costs may vary depending on the jurisdiction and size of my home. An agent of Constellation FCU will contact me PRIOR to scheduling any appraisal if the costs EXCEED the amount stated here. Please debit my (Checking/Savings/ Money) Acct for $400-$425. I have enclosed my check for $400-$425. Signature / Date Real estate laws provide that you receive a copy of a good faith estimate prior to paying any fees related to this mortgage. Paying the fee does not obligate you to take the loan.

property above. I understand that the amount stated below is an estimated cost and that actual costs may vary depending on the jurisdiction and size of my home.

When calculating your monthly loan payments, the interest rate, and not the APR, is used.

When calculating your monthly loan payments, the interest rate, and not the APR, is used. FAQ on Mortgages RATE The posted interest rate is the actual rate used to calculate your monthly loan payment. The interest rate that you will be charged on your loan is set once you have completed our