We have two categories of loan types – “residential” and “commercial”. The Residential loans are for parsonages. The Commercial loans are for churches and other church-owned properties. When determining your loan rate, refer to Category (I.) for loans related to parsonages and Category (II.) for loans related to church structures and other church properties.

I. LOANS RELATED TO PARSONAGES (parsonages on subdivided lots):

A. Construction loans:

· Six to twelve-month term: 6.0 percent (6.0%)

B. Loans secured by Real Estate (up to 20-year term):

Loan Options, Terms and Interest Rates:

· One-year ARM (Adjustable Rate Mortgage): 6.0 percent (6.0%)

· Three-year ARM: 6.5 percent (6.5%) (interest rate is fixed for three years)

· Five-year ARM: 7.0 percent (7.0%) (interest rate is fixed for five years)

C. Loans secured by Funds on Deposit with the Foundation (up to 20-year term):

Loan Options, Terms and Interest Rates (Preferred rates: 1% less than rates in Category B):

· One-year Adjustable Rate Loan: 5.0 percent (5.0%)

· Three-year Adjustable Rate Loan: 5.5 percent (5.5%) (interest rate is fixed for three years)

· Five-year Adjustable Rate Loan: 6.0 percent (6.0%) (interest rate is fixed for five years)

Interest rate caps:

· not more than two percent (2%) a year

· not more than six percent (6%) over the life of the loan.

II. LOANS RELATED TO CHURCH STRUCTURE AND OTHER CHURCH PROPERTY:

A. Construction loans:

Loan Options, Terms and Interest Rates:

· Six to twelve-month term: 6.5 percent (6.5%)

B. Loans secured by Real Estate (up to 20-year term):

Loan Options, Terms and Interest Rates:

· One-year ARM (Adjustable Rate Mortgage): 6.5 percent (6.5%)

· Three-year ARM: 7.0 percent (7.0%) (interest rate is fixed for three years)

· Five-year ARM: 7.5 percent (7.5%) (interest rate is fixed for five years)

C. Loans secured by Funds on Deposit with the Foundation (up to 20-year term):

Loan Options, Terms and Interest Rates (Preferred rates: 1% less than rates in Category B):

· One-year Adjustable Rate Loan: 5.5 percent (5.5%)

· Three-year Adjustable Rate Loan: 6.0 percent (6.0%) (interest rate is fixed for three years)

· Five-year Adjustable Rate Loan: 6.5 percent (6.5%) (interest rate is fixed for five years)

There are no interest rate caps on these loans and there are prepayment penalties.

Prepayment penalties only apply if the loan is refinanced with another financial

institution.

LOAN FEES:

• New loans: Loan fee is one percent of the loan amount
• Refinanced loans: Loan fee is $ 250
• Minimum loan fee: $ 250 for all loans
• Fee payment:

• New Loans: The fee payment is divided into two parts: 50 percent of the total fee is due when the signed Initial Loan Letter is returned to the Foundation with the remainder of the one percent fee due at the time of the commitment letter is signed and returned to the UMFNE
• Refinancing of existing loan balance: $ 250 is due at the time the commitment letter is signed and returned to the UMFNE

February 2008