Finance Charges on the Truth in Lending by wan86752


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									                               Second Mortgage Truth-in-Lending Disclosure
                                                 House Key CLT

                   Creditor:                 Washington State Housing Finance Commission
                                            1000 Second Ave., Suite 2700, Seattle, WA 98104

      Name of Borrower(s):

         Property Address:

              Annual                Finance Charge           Amount Financed            Total of Payments
         Percentage Rate
       The cost of your credit    The dollar amount the    The amount of credit     The amount you will have
          as a yearly rate         credit will cost you      provided to you        paid after you have made
                                                            or on your behalf       all payments as scheduled

               #VALUE!                 #VALUE!                  #VALUE!                  #VALUE!

   Payment Schedule:                 Payment due on date of loan maturity
                                     at #VALUE!     .

   This obligation has a demand feature.

   Deferred Payment:                 Second mortgage is due on the earlier of: (a) the primary loan being refinanced
                                     or paid in full; (b) the property encumbered by the Deed of Trust ceases
                                     to be the borrower's primary residence; (c) the date on which the property
                                     (or any interest thereon) is sold or transferred or refinanced; or (d) 30 years.

   Security:                         You are giving a security interest in the property being purchased.

   Late Charges:                     There are no late charges associated with this mortgage

   Prepayment:                       If you pay the principal off early, you will not have to pay a penalty and
                                     you will not be entitled to a refund of part of any prepaid finance charge.

   Assumption:                       Someone buying your home cannot assume the remainder of this
                                     mortgage on the original terms.

   Property Insurance:               Property insurance is required in connection with this loan. You may select
                                     an insurer of your own choice, subject to our right to reasonably object
                                     to that choice.

See your contract documents for any additional information about nonpayment, default, any
required repayment in full before the scheduled date. You are not required to complete
this agreement merely because you have received these disclosures or signed
a loan application.
Fee Disclosure:                    The APR calculation also includes the following prepaid finance charges:
                                         LOAN AMOUNT                        ITEM                 AMOUNT
                                                                   Program Application         $       40.00

                                                                          TOTAL:               $         40.00
This disclosure applies to your second mortgage, your lender will provide an additional disclosure for fees
applicable to your first mortgage.

                                      Defintion of Truth-in-Lending Terms

Annual Percentage Rate

This is not the Note rate for which the borrower applied. The Annual Percentage Rate (APR) is the cost of
the loan in percentage terms taking into account various loan charges of which interest is only one such
charge. Other charges which are used in the calculation of the APR are prepaid finance charges such as loan
loan origination discount, origination fees, prepaid interest and other credit costs. The APR is calculated by
spreading these charges over the life of the loan which results in an interest rate higher than the interest
rate shown on your Mortgage/Deed of Trust Note. If the interest was only the Finance Charge, then the
interest rate and the APR would be the same

Prepaid Finance Charges

Prepaid Finance Charges are certain charges made in connection with the loan and which must be paid upon
the close of the loan. These charges are defined by the Federal Reserve Board in Regulation Z and the
charges must be paid by the borrower only, and not the seller if applicable. Non-inclusive examples of such
charges are: loan origination fee, 'points' or discount, tax service fee. Some loan charges are specifically
excluded from the Prepaid Finance Charge such as appraisal fees and credit report fees.

Prepaid Finance Charges are totaled and then subtracted from the Loan Amount (the face amount of the Deed
of Trust/Mortgage Note). The net figure is the Amount Financed as explained below.

Finance Charge

The amount of interest, prepaid finance charge and certain insurance premiums (if any) which the borrower will
be expected to pay over the life of the loan.

Amount Financed

The amount financed is the loan applied for less the prepaid finance charges.

Total of Payments

This figure represents the total of all payments made towards the principal, interest and mortgage insurance (if

Payment Schedule

The dollar figures in the Payment Schedule represent principal, interest, plus Private Mortgage Insurance (if
applicable). These figures will not reflect taxes and insurance escrows or any temporary buydown payments
contributed by the seller.

I/we understand that my/our home purchase is assisted by a downpayment loan from the Washington
State Housing Finance Commission (Commission). I/we understand that the Commission may require the
loan to be repaid in full if the home is no longer my/our principal residence, if the home is sold or transferred,
or if the first mortgage is prepaid or refinanced. I/we further understand that, in the event the Commission
requires repayment prior to the maturity date, I/we will be required to pay the accrued interest as well as the
outstanding principal balance on the loan. I/we have received a copy of this Disclosure.

_________________________________                        _________________________________
Borrower             Date                                 Co-borrower        Date
                              House Key Rural
             Original Loan Amount
   #VALUE!   Accured Interest                                    30 years
   #VALUE!   Loan Amount for Repayment                          3% Interest Rate

  Balance    Principal       Interest
1  #VALUE!       #VALUE!                $0.00   #VALUE!   #VALUE!
                                                             $0.00   #VALUE!
                                                             $0.00     $31.62

                #VALUE!         #VALUE!         #VALUE!


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