Mortgage Advance

Description
These fixed rate advances are repaid according to a specified schedule with a balloon payment of remaining principal at maturity. Annual repayments of principal are based on a prepayment assumption selected by the member, allowing the repayment of the advance to match anticipated prepayments on the mortgages being funded. The minimum advance amount is $250,000.

Term
From 3 to 12 years. Interest on the advance will be paid monthly.
Principal payments will be due annually on day 15 of the anniversary
month of the advance.

Application
Call the FHLBI by 10:00 a.m. Indianapolis time for same business day funding.

Rate
At the time of application, the FHLBI will provide a rate indication and a principal repayment schedule based on the terms and prepayment assumptions specified by the member.

Commitment
Upon credit approval, a rate commitment will be issued based on the terms of the advance.

Takedown
Once a rate commitment is issued, takedown is mandatory within 5 business days of the commitment and may occur on any day after the rate is set.

Commitment fee
At rate commitment, a 1/4% commitment fee will be charged for advances issued with an option to repay an additional percentage. Also, a commitment fee may apply if a commitment period greater than 5 business days is requested.

Prepayment
If requested by the member, the advance may be issued with an option to repay an additional percentage of the outstanding principal in any or all years without a fee. Such payments may only be made on the regular annual principal repayment date, and the member must give a minimum of 15 days' written notice of its intent to repay. Repayments of principal at other times or in excess of the specified optional amount will be subject to a prepayment fee described in the mortgage advance terms sheet.

Updated: February 25, 2008