This process can result in advance rates four to six basis points lower than our posted pricing for advances of the same maturities. Pricing of the Auction-Based Advance is determined after a customer's order has been placed. The rate on the advance will be the rate we receive in the auction plus a small mark-up. Auctions are held twice a week on Tuesday and Thursday with settlement on Wednesday and Friday. The ability to lock-in low rates with extended maturities can reduce an institution's overall cost of funds and help manage interest rate risk.
Interest is payable monthly with principal due at maturity.
Amortizing Advances are available in monthly increments in maturities from 2 to 30 years, which makes them an ideal funding source for residential mortgages and other real estate-related assets. Amortizing Advances are usually less expensive than Fixed-Rate Advances of the same maturity. Seattle Bank staff can customize amortization schedules to help customers match the cash flows of the assets being funded. This fixed-term advance's rate is tied to common financial indices. Today's Rates Case Study Putable Advance Putable Advances are fixed-rate funding in which the Seattle Bank purchases from the customer the option to terminate the loan on specific dates through its term.