Amortizing Advance

Amortizing Advances can be structured to match a variety of fixed-rate mortgage amortization schedules, giving you the flexibility to customize the advance to meet your specific funding needs. Symmetrical prepayment features are not available on Amortizing Advances with a delayed amortization or prepayment (call) feature.

Amortizing Advance Details

  • Features
    • Amortization periods up to 30 years with balloon/ final maturities up to 30 years
    • Monthly, quarterly, semi-annual or annual payment schedules based on:
      • Level Payments* – Equal periodic principal and interest payments over the life of the advance.
      • Level Principal Payments – Equal periodic principal payments over the life of the advance.
    • Available with delay feature which makes proceeds available on day one, but commencement of the repayment of the principal can be delayed for up to five years
    • An option to prepay without incurring a prepayment fee following a member-selected lockout date can also be included
    • Available with symmetrical prepayment feature, excluding Community Investment Advances (CIA)
      • Symmetrical prepayment feature requires $1 million minimum size and maximum term to maturity of 10 years.
    • Actual principal and interest payments charged over the life of the advance may differ between billing periods due to the Bank’s use of an Actual Day/360 Day calendar in its interest calculations.
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  • Benefits
    • Match the scheduled amortization characteristics of many fixed rate assets
    • Manage long-term and unpredictable cash flows
    • Control the timing of the principal cash flows and the repayment of the advance with the delay feature
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  • Product Overview
    • Availability - Same Day
    • Term Limits - 1 to 30 years
    • Minimum Requirement - $100,000
    • Interest Billing - Various
    • Rates Variable/Fixed - Fixed
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  • Optimal Yield Curves

    based of rate expectations

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  • Possible Uses

Features

  • Amortization periods up to 30 years with balloon/ final maturities up to 30 years
  • Monthly, quarterly, semi-annual or annual payment schedules based on:
    • Level Payments* – Equal periodic principal and interest payments over the life of the advance.
    • Level Principal Payments – Equal periodic principal payments over the life of the advance.
  • Available with delay feature which makes proceeds available on day one, but commencement of the repayment of the principal can be delayed for up to five years
  • An option to prepay without incurring a prepayment fee following a member-selected lockout date can also be included
  • Available with symmetrical prepayment feature, excluding Community Investment Advances (CIA)
    • Symmetrical prepayment feature requires $1 million minimum size and maximum term to maturity of 10 years.
  • Actual principal and interest payments charged over the life of the advance may differ between billing periods due to the Bank’s use of an Actual Day/360 Day calendar in its interest calculations.

Benefits

  • Match the scheduled amortization characteristics of many fixed rate assets
  • Manage long-term and unpredictable cash flows
  • Control the timing of the principal cash flows and the repayment of the advance with the delay feature

Product Overview

  • Availability - Same Day
  • Term Limits - 1 to 30 years
  • Minimum Requirement - $100,000
  • Interest Billing - Various
  • Rates Variable/Fixed - Fixed

Optimal Yield Curves

based of rate expectations

Uses


Request an Advance

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    Certain restrictions apply. Please reference FHLB Des Moines Member Products Policy and Collateral Procedures.