HOME EQUITY, HELOC,

AND HOME IMPROVEMENT LOAN RATES

1. The standard closing cost of $350 is currently being waived under our current Home Equity and HELOC promotion. Promotion subject to change without notice.

2. APR is Annual Percentage Rate. The minimum Home Equity rate is 5.79%. The minimum HELOC rate is 9.25%.

3. HELOC Terms and Conditions are as follows:

All HELOC annual percentage rates are variable based on the Wall Street Journal Prime Rate, "the Index", published in the Money Rate section, plus a stated margin. Check rates for the current index. The APR may change on the first day of each calendar quarter, January, April, July, and October. Changes in APR can only occur if "the Index" has changed since the last rate change. The minimum is 9.25% and the maximum is 18.00%. APR is Annual Percentage Rate.

a. The minimum line amount is $15,000.00.
b. The draw period is either five (5) or ten (10) years in length. The draw period cannot be extended. You may apply for a new HELOC, pay off the existing HELOC during the initial period, and begin a new draw period.
c. The draw period is an interest-only payment period. Reduction of principal is not required.
d. The repayment period may be either 5 or 10 years in length and the minimum payment amount is $25.00.
e. A single property can be secured by either a HELOC or home equity loan, not both at the same time.
f. You may borrow up to 80% of the value of your home minus existing mortgages and the credit line is limited to 80% of the home's value.
g. Each draw (advance) must be at least $4,000.00, the minimum per Texas statute. Advances may be completed by phone, in person, by written request, Home Banking, or the Automated Phone Banking System.

4. There is no fee for application, however, other charges may include appraisal and title policy costs if the loan is greater than $250,000.00. Fees and charges to make the loan may not exceed 2 percent of the loan amount, except for a fee or charge for an appraisal performed by a third party appraiser, a property survey performed by a state registered or licensed surveyor, a state base premium for a mortgagee policy of title insurance with endorsements, or a title examination report.

5. Consult your tax adviser regarding possible tax benefits.

6. Estimate or contract for home improvement project must be provided.

7. Loans must be on single-family detached residential property located in Texas.