| Key Features |
- Fixed rate
- Fixed final term
- Nonamortizing
- Prepayable on specified dates
- One-time cancellation options also available
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| Common Uses |
- Manage long-term interest-rate risk, and lower funding
costs if rates decline.
- Fund residential and commercial loans that offer fixed
rates and prepayment flexibility.
- Fund adjustable-rate mortgages held in portfolio.
- Fund purchases of mortgage-backed securities.
- Manage the balance sheet.
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| Maturities |
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| Disbursement |
- Third-day if requested by 3 p.m.
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| Risks
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- The Federal Home Loan Bank of Boston does not act
as a financial adviser, and members should independently
evaluate the suitability and risks of these advances.
Please see the Member-Option
Advance Primer for a discussion
of the risks and other considerations associated
with the Member-Option advance.
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| Payment of Principal
and Interest |
- Principal due at maturity and interest due monthly on
the second business day of the month.
- You may repay some or all of the principal on the specified
cancellation dates.
- Interest is calculated on an actual/360-day basis.
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| Prepayment |
- Prepayable, in full or in part, on specified cancellation
dates with no prepayment fee. Typically, the cancellation
dates are the first or third anniversary and semiannually
thereafter. (Other prepayment structures may be available.)
- On any date other than a specified cancellation date,
it is prepayable, subject to a fee.
- The member must provide notice of cancellation in writing
at least four business days before the cancellation date.
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| Forward Rate Commitments |
- Lock in a guaranteed rate up to two years before disbursement.
- Our forward rate commitment adds a premium to the current
rate.
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| More Information |
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