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Ready to get started?  Heres a helpful checklist of information you will need to apply.  Please note: This is not a complete list.  You will be required to provide additional information based on the circumstances of your specific loan or line of credit request.

  • Purchase price of the property
  • Year the home was purchased
  • Total monthly household income
  • Total monthly household expenses
  • Completed tax returns for the prior year -- two years if self-employed -- or W-2 and paystubs (for each applicant)
  • Social Security number or Tax ID (for each applicant)
  • Current balances on all outstanding debt obligations including account numbers, amount owed and recent account statements
  • Drivers license or passport identification (for each applicant)
  • Verification of any additional sources of income used when applying, such as rental, child support, disability, social security, retirement, investment income or pensions is required.



This Disclosure contains important information about Home Equity Lines of Credit and Home Equity Loans available from Bank Rhode Island.

The following information applies to both loans and lines of credit:

  • USA PATRIOT Act Notice
  • Notice of Right to Receive a Copy of an Appraisal
  • Bank Rhode Island Privacy Policy
  • Massachusetts Mortgage Loan Disclosure (Massachusetts properties only)
  • Rhode Island Title Attorney Disclosure (Rhode Island properties only)

The following information applies only to Lines of Credit:

  • Important Terms of Our Home Equity Line of Credit
  • When Your Home is on the Line

The following information applies only to Loans:

  • Servicing Disclosure Statement

Please call Bank Rhode Island at (866) 4.BANKRI if you have any additional questions about the Bank’s Home Equity Lines of Credit or Home Equity Loans.

The information in this section of the Disclosure applies to all Home Equity Lines of Credit and Home Equity Loans.



To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask your name, address, date of birth, and other information that will allow us to identify you. We also may ask to see your driver’s license or other identifying documents.

Right To Receive A Copy Of An Appraisal

You have the right to a copy of the appraisal report used in connection with your application for credit. If you wish to have a copy, please write to us at:

Bank Rhode Island
Lending Services
P.O. Box 9488
Providence, RI 02940

In your letter, give us the following information:

  • Date of Application
  • Loan Number if known
  • Subject Property Address
  • Borrower Name(s) on Loan

Upon receipt of your request, we will send the appraisal report to your address as provided on your application, unless you have specified a different address in your request.

Massachusetts Mortgage Loan Disclosure

The following information applies only if the property on which you plan to grant a mortgage to secure your loan or line of credit is located in Massachusetts. If these disclosures apply this information is part of your application:

  • The responsibility of the attorney for the Bank is to protect the interest of the Bank.
  • The borrowers may, at their own expense, engage an attorney of their selection to represent their interests in the transaction.

Rhode Island Title Attorney Disclosure

We require a title examination of the property securing you home equity loan application. You have a right under Rhode Island General Laws, Section 19-9-6, to select any qualified title attorney of your choice to search and certify the title at your expense.

If you do not exercise your right to select a title attorney, we will select one at no cost to you.

If you would like to select your own title attorney, please contact your BankRI bank branch as soon as possible with your Title Attorney's information.

The information in this section of the Disclosure applies only to Home Equity Lines of Credit.


This disclosure contains important information about our HOME EQUITY LINE OF CREDIT (the “Plan”). You should read it carefully and keep a copy for your records.


All of the terms of the Plan described herein are subject to change. If any of these terms change (other than the ANNUAL PERCENTAGE RATE) and you decide, as a result, not to enter into an agreement with us, you are entitled to a refund of any fees that you paid to us or anyone else in connection with your application.


We will take a security interest in your home. You could lose your home if you do not meet the obligations in your agreement with us.


Under this Plan, we have the following rights:

Termination and Acceleration. We can terminate the Plan and require you to pay
us the entire outstanding balance in one payment, and charge you certain fees, if any of the
following happens:

(a) You commit fraud or make a material misrepresentation at any time in connection
with the Plan. This can include, for example, a false statement about your income,
assets, liabilities, or any other aspect of your financial condition.

(b) You do not meet the repayment terms of the Plan.

(c) Your action or inaction adversely affects the collateral for the Plan or our rights in the collateral. This can include, for example, failure to maintain required insurance, waste or destructive use of the dwelling, failure to pay taxes, death of all persons liable on the account, transfer of title or sale of the dwelling, creation of a senior lien on the dwelling without our permission, foreclosure by the holder of another lien or the use of funds or the dwelling for prohibited purposes.

Suspension or Reduction. In addition to any other rights we may have, we can suspend additional extensions of credit or reduce your credit limit during any period in which any of the following are in effect:

(a) The value of your dwelling declines significantly below the dwelling’s appraised value for
purposes of the Plan. This includes, for example, a decline such that the initial difference
between the credit limit and the available equity is reduced by fifty percent and may include a
smaller decline depending on the individual circumstances.

(b) We reasonably believe that you will be unable to fulfill your payment obligations under the Plan due to a material change in your financial circumstances.

(c) You are in default under any material obligation of the Plan. We consider all of your obligations to be material. Categories of material obligations include, but are not limited to, the events described above under Termination and Acceleration, obligations to pay fees and charges obligations and limitations on the receipt of credit advances, obligations concerning maintenance or use of the dwelling or proceeds, obligations to pay and perform the terms of any other deed of trust, mortgage or lease of the dwelling, obligations to notify us and to provide documents or information to us (such as updated financial information), obligations to comply with applicable laws (such as zoning restrictions).

(d) We are precluded by government action from imposing the annual percentage rate provided for under the Plan.

(e) The priority of our security interest is adversely affected by government action to the extent that the value of the security interest is less than 120 percent of the credit limit.

(f) We have been notified by governmental authority that continued advances may constitute an unsafe and unsound business practice.

(g) The maximum annual percentage rate under the Plan is reached.

Change in Terms. We may make changes to the terms of the Plan if you agree to the change in writing at that time, if the change will unequivocally benefit you throughout the remainder of the Plan, or if the change is insignificant (such as charges relating to our data processing systems.

Fees and Charges. In order to open and maintain an account, you must pay certain fees and charges.

Lender Fees. The following fees must be paid to us:




When Charged

Annual Fee


Annually (This fee may be reduced for certain relationship Account holders)

NSF Handling Fee


At the time a payment is returned to us for non-sufficient funds

Stop Payment Fee


At the time you request a Stop Payment

Over limit Charge


At the time your Credit Line balance exceeds your credit limit

Early Closure Fee


You will be charged an Early Closure fee if you close this Credit Line Account within 1 year of the Opening Date

Late Charge. Your payment will be late if it is not receive by us within 15 days after the “Payment Due Date” shown on your periodic statement. If your payment is late we will charge you 5.000% of the payment. (Note: Massachusetts = 10.000% of the payment or $10.00, whichever is less.

Third Party Fees: You must pay certain fees to third parties such as appraisers, credit reporting firms, and government agencies. If the title to your property is maintained in the name of a trust, you also must pay a trust review fee.

These third party fees generally total $0 for lines of credit secured by a primary residence where title is not in the name of trust. For other types of collateral property, such as second homes or investment properties, third party fees may total between $300 and $1000.

PROPERTY INSURANCE. You must carry insurance on the property that secures the Plan.


You can obtain advances of credit during the following period: the draw period will extend for

120 months following the opening date of the Plan (the “Draw Period”). After the Draw Period ends, the repayment period will begin. You will no longer be able to obtain credit advances. The length of the repayment period will be 120 months. (the “Repayment Period”). Your Regular Payment will equal the amount of your accrued FINANCE CHARGES (“First Payment Stream”). You will make 120 of these payments. Your payments will be due monthly. Your “Minimum Payment” will be the Regular Payment, plus any amount past due and all other charges. Any increase in the ANNUAL PERCENTAGE RATE may increase the amount of your Regular Payment.

After completion of the First Payment Stream, your Regular Payment will be based on a percentage of your balance at the start of this payment period plus all accrued FINANCE CHARGES as shown below (“Second Payment Stream”). Your payments will be due monthly.


Range of Balances

Number of Payments

Regular Payment Calculation

All Balances


0.833% of your balance at the start of the repayment period plus all accrued FINANCE CHARGES

Your “Minimum Payment” will be the Regular Payment, plus any amount past due and all other charges. An increase in the ANNUAL PERCENTAGE RATE may increase the amount of your Regular Payment.

In any event, if your Credit Line balance falls below $50.00, you agree to pay your balance in full.

MINIMUM PAYMENT EXAMPLE. If you made only the minimum payment and took no other credit advances, it would take 20 years to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 3.250%. During the Draw Period, you would make 120 monthly payments ranging from $24.93 to $27.60. Then you would make 120 monthly payments during the Repayment Period ranging from $60.10 to $111.13.

TRANSACTION REQUIREMENTS. The following transaction limitations will apply to the use of our Credit Line:

Credit Line Check, Telephone Request, Request By Mail, In Person Request and Other Methods Limitations. The following transaction limitations will apply to your Credit Line and the writing of Credit Line Checks, requesting an advance by telephone, requesting an advance by mail, requesting an advance in person and accessing by other methods.

Minimum Advance Amount. The minimum amount of any credit advance that can be made on your Credit Line is $250.00. This means any Credit Line Check must be written for at least the minimum advance amount.

TAX DEDUCTIBILITY. You should consult a tax advisor regarding the deductibility of interest
and charges for the Plan.

ADDITIONAL HOME EQUITY PROGRAMS. Please ask us about our other available Home Equity Line of Credit plans.

VARIABLE RATE FEATURE. The Plan has a variable rate feature. The ANNUAL PERCENTAGE rate (corresponding to the periodic rate), and the minimum payment amount can change as a result. The ANNUAL PERCENTAGE RATE does not include costs other than interest.

THE INDEX. The annual percentage rate is based on the value of an index (referred to in this disclosure as the “Index”). The Index is the PRIME RATE AS PUBLISHED IN THE MONEY RATES SECTION OF THE WALL STREET JOURNAL. Information about the Index is available or published at least weekly in the Wall Street Journal’s Money Rates table. We will use the most recent Index value available to us as of the date of any annual percentage rate adjustment. If the Index is no longer available, we will choose a new Index and margin. The new Index will have an historical movement substantially similar to the original Index, and the new Index and margin will result in an annual percentage rate that is substantially similar to the rate in effect at the time the original Index becomes unavailable.

ANNUAL PERCENTAGE RATE. To determine the Periodic Rate that will apply to your First Payment Stream, we add a margin to the value of the Index, then divide the value by the number of days in a year (daily). To obtain the ANNUAL PERCENTAGE RATE we multiply the Periodic Rate by the number of days in a year (daily). This result is the ANNUAL PERCENTAGE RATE for your First Payment Stream. To determine the Periodic Rate that will apply to your Second Payment Stream, we add a margin to the value of the Index, then divide the value by the number of days in a year (daily). To obtain the ANNUAL PERCENTAGE RATE we multiply the Periodic Rate by the number of days in a year (daily). This result is the ANNUAL PERCENTAGE RATE for your Second Payment Stream. A change in the Index rate generally will result in a change in the ANNUAL PERCENTAGE RATE. The amount that your ANNUAL PERCENTAGE RATE may change also may be affected by the by the lifetime annual percentage rate limits, as discussed on the next page..

Initial Annual Percentage Rate Discount.  The initial annual percentage rate is “discounted” –it is not based on the Index and margin used for later rate adjustments.  The initial discounted rate will be in effect for 12 months.

Please ask us for the current Index value, margin and annual percentage rate. After you open a credit line, rate information will be provided on periodic statements that we send you.

FREQUENCY OF ANNUAL PERCENTAGE RATE ADJUSTMENTS. Your annual percentage rate can change daily. There is no limit on the amount by which the annual percentage rate can change during any one year period. However, under no circumstances will your ANNUAL PERCENTAGE RATE exceed 21.000% per annum (18% per annum for residents of Massachusetts) at any time during the term of the Plan.


Draw Period. If you had an outstanding balance of $10,000.00, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 21.000% would be $178.36 (or 18% with a payment of $152.88 for residents of Massachusetts). This ANNUAL PERCENTAGE RATE could be reached immediately or prior to the 1st payment.

Repayment Period. If you had an outstanding balance of $10,000.00, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 21.000% would be $263.15 (or 18% with a payment of $237.45 for Massachusetts residents). This ANNUAL PERCENTAGE RATE could be reached at the time of the 1st payment during the Repayment Period.

Prepayment. You may prepay all or any amount owing under the Plan at any time without penalty.

HISTORICAL EXAMPLE. The example below shows how the ANNUAL PERCENTAGE RATE and the minimum payments for a single $10,000 credit advance would have changed based on changes in the Index from 1999 to 2013. The Index values are from the following reference period: as of the first business day in January. While only one payment per year is shown, payments may have varied during each year. Different outstanding principal balances could result in different payment amounts.

The table assumes that no additional credit advances were taken, that only the minimum payments were made, and that the rate remained constant during the year. It does not necessarily indicate how the Index or your payments would change in the future.


Index Table

Year *



Margin (1)


Annual Percentage Rate

Monthly Payment


draw period



















































repayment period


























*As of the first business day in January

(1) This is a margin we have used recently; your margin may be different
(7) The ANNUAL PERCENTAGE RATE reflects a discount that we have provided recently; your Plan may be discounted by a different amount.

When Your Home is On the Line

What You Should Know About Home Equity Lines of Credit

From the Board of Governors of the Federal Reserve System.

If you are in the market for credit, a home equity plan is one of several options that might be right for you. Before making a decision, however, you should weigh carefully the costs of a home equity line against the benefits. Shop for the credit terms that best meet your borrowing needs without posing undue financial risks. And remember, failure to repay the amounts you’ve borrowed, plus interest, could mean the loss of your home.

Home Equity Plan Checklist

Ask your lender to help fill out this checklist.



Plan A

Plan B

Fixed annual percentage rate



Variable annual percentage rate



• Index used and current value



• Amount of margin

• Frequency of rate adjustments

• Amount/length of discount (if any)

• Interest-rate cap and floor

Length of plan

Draw period

Repayment period

Initial fees

Appraisal fee

Application fee

Up-front charges, including points

Closing costs


During the draw period

Interest and principal payments

Interest-only payments

Fully amortizing payments

When the draw period ends

Balloon payment?

Renewal available?

Refinancing of balance by lender?

What is a home equity line of credit?

A home equity line of credit is a form of revolving credit in which your home serves as collateral. Because a home often is a consumer’s most valuable asset, many homeowners use home equity credit lines only for major items, such as education, home improvements or medical bills, and choose not to use them for day-to-day expenses.

With a home equity line, you will be approved for a specific amount of credit. Many lenders set the credit limit on a home equity line by taking a percentage (say, 75%) of the home’s appraised value and subtracting from that the balance owed on the existing mortgage.

For example:

Appraised value of home $100,000
Percentage x 75%
Percentage of appraised value = $75,000
Less balance owed on mortgage - $40,000
Potential line of credit $ 35,000

In determining your actual credit limit, the lender will also consider your ability to repay the loan (principal and interest) by looking at your income, debts, and other financial obligations as well as your credit history.

Many home equity plans set a fixed period during which you can borrow money, such as 10 years. At the end of this “draw period,” you may be allowed to renew the credit line. If your plan does not allow renewals, you will not be able to borrow additional money once the period has ended. Some plans may call for payment in full of any outstanding balance at the end of the period. Others may allow repayment over a fixed period (the “repayment period”), for example, 10 years.

Once approved for a home equity line of credit, you will most likely be able to borrow up to your credit limit whenever you want. Typically, you will use special checks to draw on your line. Under some plans, borrowers can use a credit card or other means to draw on the line. There may be other limitations on how you use the line. Some plans may require you to borrow a minimum amount each time you draw on the line (for example, $300) or keep a minimum amount outstanding. Some plans may also require that you take an initial advance when the line is set up.

What should you look for when shopping for a plan?

If you decide to apply for a home equity line of credit, look for the plan that best meets your particular needs. Read the credit agreement carefully, and examine the terms and conditions of various plans, including the annual percentage rate (APR) and the costs of establishing the plan. Remember, though, that the APR for a home equity line is based on the interest rate alone and will not reflect closing costs and other fees and charges, so you’ll need to compare these costs, as well as the APRs, among lenders.

Variable interest rates

Home equity lines of credit typically involve variable rather than fixed interest rates. The variable rate must be based on a publicly available index (such as the prime rate published in some major daily newspapers or a U.S. Treasury bill rate). In such cases, the interest rate you pay for the line of credit will change, mirroring changes in the value of the index. Most lenders cite the interest rate you will pay as the value of the index at a particular time, plus a “margin,” such as 2 percentage points. Because the cost of borrowing is tied directly to the value of the index, it is important to find out which index is used, how often the value of the index changes, and how high it has risen in the past. It also is important to note the amount of the margin.

Lenders sometimes offer a temporarily discounted interest rate for home equity lines – an “introductory” rate that is unusually low for a short period, such as 6 months.

Variable-rate plans secured by a dwelling must, by law, have a ceiling (or cap) on how much your interest rate may increase over the life of the plan. Some variable-rate plans limit how much your payment may increase and how low your interest rate may fall if the index drops.

Some lenders allow you to convert from a variable interest rate to a fixed rate during the life of the plan, or let you convert all or a portion of your line to a fixed-term installment loan.

Costs of establishing and maintaining a home equity line

Many of the costs of setting up a home equity line of credit are similar to those you pay when you get a mortgage. For example:

• A fee for a property appraisal to estimate the value of your home;

• An application fee, which may not be refunded if you are turned down for credit;

• Up-front charges, such as one or more “points” (one point equals 1 percent of the credit limit); and

• Closing costs, including fees for attorneys, title search, mortgage preparation and filing, property and title insurance, and taxes.

In addition, you may be subject to certain fees during the plan period, such as annual membership or maintenance fees and a transaction fee every time you draw on the credit line.

You could find yourself paying hundreds of dollars to establish the plan. And if you were to draw only a small amount against your credit line, those initial charges would substantially increase the cost of the funds borrowed. On the other hand, because the lender’s risk is lower than for other forms of credit, as your home serves as collateral, annual percentage rates for home equity lines are generally lower than rates for other types of credit. The interest you save could offset the costs of establishing and maintaining the line. Moreover, some lenders waive some or all of the closing costs.

How will you repay your home equity plan?

Before entering into a plan, consider how you will pay back the money you borrow. Some plans set a minimum monthly payment that includes a portion of the principal (the amount you borrow) plus accrued interest. But, unlike with typical installment loan agreements, the portion of your payment that goes toward principal may not be enough to repay the principal by the end of the term. Other plans may allow payment of interest only during the life of the plan, which means that you pay nothing toward the principal. If you borrow $10,000, you will owe that amount when the payment plan ends.

Regardless of the minimum required payment on your home equity line, you may choose to pay more, and many lenders offer a choice of payment options. Many consumers choose to pay down the principal regularly as they do with other loans. For example, if you use your line to buy a boat, you may want to pay it off as you would a typical boat loan.

Whatever your payment arrangements during the life of the plan—whether you pay some, a little, or none of the principal amount of the loan—when the plan ends, you may have to pay the entire balance owed, all at once. You must be prepared to make this “balloon payment” by refinancing it with the lender, by obtaining a loan from another lender, or by some other means. If you are unable to make the balloon payment, you could lose your home.

If your plan has a variable interest rate, your monthly payments may change. Assume, for example, that you borrow $10,000 under a plan that calls for interest-only payments. At a 10% interest rate, your monthly payments would be $83. If the rate rises over time to 15%, your monthly payments will increase to $125. Similarly, if you are making payments that cover interest plus some portion of the principal, your monthly payments may increase, unless your agreement calls for keeping payments the same throughout the plan period.

If you sell your home, you will probably be required to pay off your home equity line in full immediately. If you are likely to sell your home in the near future, consider whether it makes sense to pay the up-front costs of setting up a line of credit. Also keep in mind that renting your home may be prohibited under the terms of your agreement.

Lines of credit vs. traditional second mortgage loans

If you are thinking about a home equity line of credit, you might also want to consider a traditional second mortgage loan. This type of loan provides you with a fixed amount of money, repayable over a fixed period. In most cases, the payment schedule calls for equal payments that pay off the entire loan within the loan period. You might consider a second mortgage instead of a home equity line if, for example, you need a set amount for a specific purpose, such as an addition to your home.

In deciding which type of loan best suits your needs, consider the costs under the two alternatives.

Look at both the APR and other charges. Do not, however, simply compare the APRs, because the APRs on the two types of loans are figured differently:

• The APR for a traditional second mortgage loan takes into account the interest rate charged plus points and other finance charges.

• The APR for a home equity line of credit is based on the periodic interest rate alone. It does not include points or other charges.

Disclosures from Lenders

The federal Truth in Lending Act requires lenders to disclose the important terms and costs of their home equity plans, including the APR, miscellaneous charges, the payment terms, and information about any variable rate feature. And in general, neither the lender nor anyone else may charge a fee until after you have received this information. You usually get these disclosures when you receive an application form, and you will get additional disclosures before the plan is opened. If any term (other than a variable-rate feature) changes before the plan is opened, the lender must return all fees if you decide not to enter into the plan because of the change. When you open a home equity line, the transaction puts your home at risk. If the home involved is your principal dwelling, the Truth in Lending Act gives you 3 days from the day the account was opened to cancel the credit line. This right allows you to change your mind for any reason. You simply inform the lender in writing within the 3-day period. The lender must then cancel its security interest in your home and return all fees – including any application and appraisal fees – paid to open the account.

What if the lender freezes or reduces your line of credit?

Plans generally permit lenders to freeze or reduce a credit line if the value of the home “declines significantly” or, when the lender “reasonably believes” that you will be unable to make your payments due to a “material change” in your financial circumstances. If this happens, you may want to:

Talk with your lender. Find out what caused the lender to freeze or reduce your credit line and
what, if anything, you can do to restore it. You may be able to provide additional information to
restore your line of credit, such as documentation showing that your house has retained its value or
that there has not been a “material change” in your financial circumstances. You may want to get copies of your credit reports (go to the Federal Trade Commission’s website, at, for information about free copies) to make sure all the information in them is correct. If your lender suggests getting a new appraisal, be sure you discuss appraisal firms in advance so that you know they will accept the new appraisal as valid.

Shop around for another line of credit. If your lender does not want to restore your line of credit, shop around to see what other lenders have to offer. You may be able to pay off your original line of credit and take out another one. Keep in mind, however, that you may need to pay some of the same application fees you paid for your original line of credit.


Annual membership or maintenance fee An annual charge for access to a financial product such as a line of credit, credit card, or account. The fee is charged regardless of whether or not the product is used.

Annual Percentage Rate (APR) The cost of credit, expressed as a yearly rate. For closed end credit, such as car loans or mortgages, the APR includes the interest rate, points, broker fees, and other credit charges that the borrower is required to pay. An APR, or an equivalent rate, is not used in leasing agreements.

Application fee Fees charged when you apply for a loan or other credit. These fees may include charges for property appraisal and a credit report.

Balloon payment A large extra payment that may be charged at the end of a mortgage loan or lease.

Cap (interest rate) A limit on the amount that your interest rate can increase. Two types of interest-rate caps exist. Periodic adjustment caps limit the interest-rate increase from one adjustment period to the next. Lifetime caps limit the interest-rate increase over the life of the loan. By law, all adjustable-rate mortgages have an overall cap.

Closing or settlement costs Fees paid when you close (or settle) on a loan. These fees may include application fees; title examination, abstract of title, title insurance, and property survey fees; fees for preparing deeds, mortgages, and settlement documents; attorneys’ fees; recording fees; estimated costs of taxes and insurance; and notary, appraisal, and credit report fees. Under the Real Estate

Settlement Procedures Act, the borrower receives a good faith estimate of closing costs within three days of application. The good faith estimate lists each expected cost as an amount or a range.

Credit limit The maximum amount that may be borrowed on a credit card or under a home equity line of credit plan.

Equity The difference between the fair market value of the home and the outstanding balance on your mortgage plus any outstanding home equity loans.

Index The economic indicator used to calculate interest-rate adjustments for adjustable-rate mortgages or other adjustable-rate loans. The index rate can increase or decrease at any time. See also Selected Index Rates for ARMs over an 11-year Period( lish.htm) for examples of common indexes that have changed in the past.

Interest rate The percentage rate used to determine the cost of borrowing money, stated usually as a percentage of the principal loan amount and as an annual rate.

Margin The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.

Minimum payment The lowest amount that you must pay (usually monthly) to keep your account in good standing. Under some plans, the minimum payment may cover interest only; under others, it may include both principal and interest.

Points (also called discount points) One point is equal to 1 percent of the principal amount of a mortgage loan. For example, if a mortgage is $200,000, one point equals $2,000. Lenders frequently charge points in both fixed-rate and adjustable-rate mortgages to cover loan origination costs or to provide additional compensation to the lender or broker. These points usually are paid at closing and may be paid by the borrower or the home seller, or may be split between them. In some cases, the money needed to pay points can be borrowed (incorporated in the loan amount), but doing so will increase the loan amount and the total costs. Discount points (also called discount fees) are points that you voluntarily choose to pay in return for a lower interest rate.

Security Interest If stated in your credit agreement, a creditor’s, lessor’s, or assignee’s legal right to your property (such as your home, stocks, or bonds) that secures payment of your obligation under the credit agreement.

Transaction fee Fee charged each time a withdrawal or other specified transaction is made on a line of credit, such as a balance transfer fee or a cash advance fee.

Variable Rate An interest rate that changes periodically in relation to an index, such as the prime rate. Payments may increase or decrease accordingly.

Where to go for help

For additional information or to file a complaint about a bank, savings and loan, credit union, or other financial institution, contact one of the following federal agencies, depending on the type of institution.

State-chartered bank members of the Federal Reserve System

Federal Reserve Consumer Help
PO Box 1200
Minneapolis, MN 55480
888-851-1920 (toll free)
877-766-8533 (TTY) (toll free)
877-888-2520 (fax) (toll free)

National banks and national-bank-owned mortgage companies
and federal saving associations

Office of the Comptroller of the Currency (OCC)
Customer Assistance Group
1301 McKinney Street, Suite 3450
Houston, TX 77010
800-613-6743 (toll free)
713-336-4301 (fax)

Federally chartered credit unions

National Credit Union Administration (NCUA)
Office of Public and Congressional Affairs
1775 Duke Street
Alexandria, VA 22314
800-755-1030 (toll free)
703-518-6409 (fax)

1 Banks with “National” in their name or “N.A.” after the name.

2 Credit unions with “Federal” in their name.

For state-chartered credit unions, contact the regulatory agency in the state in which the credit union is chartered.

Federally insured state-chartered banks that are not members of the Federal Reserve System

Federal Deposit Insurance Corporation (FDIC)
Consumer Response Center
1100 Walnut Street, Box #11
Kansas City, MO 64108
877-ASK-FDIC (877-275-3342) (toll free)


Mortgage companies and other lenders

Federal Trade Commission (FTC)
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580
202-326-3758 or (877) FTC-HELP
866-FTC-HELP (877-382-4357) (toll free)

Credit cards, mortgages, and consumer financial products

Consumer Financial Protection Bureau (CFPB)
PO Box 4503
Iowa City, IA 52244
Phone: 855-411-2372
855-729-2372 (TTY/TDD)

More resources and ordering information

For more resources on mortgages and other financial topics, visit

The information in this section of the pamphlet applies only to Home Equity Loans.

Good Faith Estimate of Settlement Costs

If you are applying for a home equity loan you will receive a Good Faith Estimate at the time you apply. The Good Faith Estimate includes important information about the loan terms for which you are applying and an estimate of all settlement costs.

Servicing Disclosure Statement




You are applying for a mortgage loan covered by the Real Estate Settlement Procedures Act(RESPA) (12 U.S.C. Sec. 2601 et seq.). RESPA gives you certain rights under federal law. This statement describes whether the servicing for this loan may be transferred to a different loan servicer. “Servicing” refers to collecting your principal, interest, and escrow accounts payments, if any, as well as sending any monthly or annual statements, tracking account balances, and handling other aspects of your loan. You will be given advance notice before a transfer occurs.

Servicing Transfer Information: We may assign, sell, or transfer the servicing of your loan while the loan is outstanding. However, we are able to service your loan and presently intend to do so.


                      What Does Bank Rhode Island        Rev 09/12 
Do With Your Personal Information?


Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.


The types of personal information we collect and share depend on the product or service you have with us. This information can include:

  • Social Security Number and Income
  • Account Balances and Payment History
  • Credit History and Credit Scores

When you are no longer our customer, we continue to share your information as described in this notice.


All financial companies need to share customer’s personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customer’s personal information; the reasons Bank Rhode Island chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information

Does Bank Rhode Island share?

Can you limit this sharing?

For our everyday business purposes —
such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus



For our marketing purposes —
to offer our products and services to you
Yes No

For joint marketing with other financial

Yes No

For our affiliates’ everyday business  
purposes —
information about your transactions and

Yes No

For our affiliates’ everyday business
purposes —
information about your creditworthiness

No We don’t share
For our affiliates to market to you No We don’t share

For non-affiliates to market to you

No We don’t share


Call (866) 4-BANKRI/(866) 422-6574 or go to

What We Do

How does Bank Rhode Island protect my personal information?

To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.

We regularly test and evaluate our information security measures, train employees and adopt enhancements as necessary to protect your information.

How does Bank Rhode Island collect my personal information?

We collect your personal information, for example, when you

  • open an account or apply for a loan
  • use your debit card or provide account and contact
  • make deposits or withdrawals from your account

We also collect your personal information from others, such as credit bureaus or other companies.

Why can’t I limit all sharing?

Federal law gives you the right to limit only

  • sharing for affiliates’ everyday business purposes —
    information about your creditworthiness
  • affiliates from using your information to market to you
  • sharing for non-affiliates to market to you
State laws and individual companies may give you additional rights to limit sharing.



Companies related by common ownership or control. They can be financial and non-financial companies.

  • Our affiliates include companies that with us are under common control of Brookline Bancorp such as The First National Bank of Ipswich, Brookline Bank and financial companies such as:
    • investment management companies
    • insurance agencies
    • leasing and realty companies


Companies not related by common ownership or control. They can be financial or non-financial companies.

  • Bank Rhode Island does not share with non-affiliates so they can market to you.

Joint Marketing

A formal agreement between nonaffiliated financial companies that together market financial products or services to you.

  • Our joint marketing partners may include:
    mortgage, insurance companies and investment advisors.

Bank Rhode Island
One Turks Head Place
Providence, RI 02903

Member FDIC
Equal Housing Lender.

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