Constant Monthly Payment (CMP) Advance

An intermediate fixed rate advance that fully amortized by the final maturity date

  • Effective financing tool to match fund various types of intermediate term loans (e.g., home improvement loans)
  • Can be used to fund investments of comparable maturity which are expected to be held in portfolio for the entire life
Maturity
3, 4, or 5 years
Rate
Fixed for entire term to maturity
Accrual Basis
30 / 360 day basis
Interest and Principal are Paid
Monthly (payment is first credited to interest due, then to principal reduction)
Principal Prepayment Policy
Prepayable subject to prepayment fee (equal to the present value of 100% of the lost cash flow to the Bank based upon the difference between the rate on the advance and the current yield on FHLB securities of the same remaining effective weighted average maturity, discounted at the current yield)
Submission of Application
A Constant Monthly Payment Advance application is required for each borrowing

To learn more about our Advance products, contact Jeff Berryman or Lisa Wishart at 800-828-4191.

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