Excerpted from November 4, 2005, Solutions News Extra
Most economists predict that interest rates are on their way up. The Fed has raised the fed funds rate at each of their last 12 meetings. Where does that leave an electric cooperative that wants to borrow in the future or has an upcoming repricing, but is concerned that rates will continue their upward spiral? CFC has developed an option that might be just what is needed—CFC RateLock™. The product is available to all CFC members.
With CFC RateLock a member who expects interest rates to rise—increasing their future interest expenses—can, for a small fee, lock in a current rate on expected future borrowing or upcoming repricing.
And, to make it easier to use, the program has been designed to be as flexible as possible. The term of the rate can be from one to 30 years or fixed to the maturity of the loan. And the fee can be paid as an interest rate adder—to help spread the cost over the life of the loan—or can be paid up front.
Read the entire Solutions story on CFC RateLock.
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