Variable Rate Mortgage Loans (30-day Adjustables)

[Features & Benefits] [Frequently Asked Questions]

The interest rate on these loans may change monthly. The rate is based on the rolling average interest rates of 3- and 6-month Farm Credit Bonds. The interest rate on variable rate loans may have higher volatility than other products. Rate changes may occur at the first of every month and customers are notified of the rate changes 10 days in advance of the effective date of a rate increase and not later than the effective date of a rate decrease.

This product is available with or without a 6% lifetime cap.

Variable interest rate mortgages may be appropriate if you:

Feel the market interest rate is in a downward trend and plan to fix the rate at a future date.
Feel comfortable taking interest rate risk, and have the financial strength to tolerate possible variations in the interest rate and payment.

Often, this product is priced lower than other products.

Features and Benefits

Feature	Benefit
Variable interest rates are often priced lower than other products.	Minimizes your near term loan expense.
Loan rate generally follows the short-term market interest rate.	You are not locked into a rate, this could minimize your loan expense if rates are declining.
Fully convertible to other products.	You can change to a fixed rate loan whenever you desire without having to refinance or pay closing costs. This allows you to be in control of your interest cost and interest rate risks.

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Frequently Asked Questions

Question	Answer
Can variable rate mortgage loans be written for consumer and business purposes?	Yes, they can.
If it appears rates may increase, how can I reduce the risk of my rate increasing?	Loans can be converted from variable rates to other fixed rate or adjustable rates at any time. You can convert by executing a conversion agreement and paying the applicable conversion fee.

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