Conversion Program

When interest rates change or other circumstances offer you increased savings or greater security, you can 'convert' your loan at Farm Credit. Unlike other lenders who require a lengthy and expensive refinancing process, Farm Credit allows you to quickly convert your loan to a new product for a simple processing fee of $350. Please call your local office for eligibility requirements.

What is a conversion?

Conversion gives you the ability to change the interest rate on your Farm Credit loan during the term of the loan. In it an amendment to your loan agreement in which you authorize Farm Credit to change the type of loan product you are using. For example, you may be able to switch from a 3-year adjustable rate mortgage to a 15-year fixed rate loan.

Conversion does not require refinancing with its associated costs and services - such as new financials, appraisals and title searches - all of which cost you time and money. In addition, there is no need to re-qualify for the loan.

  • Avoid expensive refinancing costs
  • Flexibility to manage your loan rate
  • Lock in rates for a longer or shorter period of time

Although conversion is open to you at any time, there are financial considerations. Generally, if you convert during the first 12 months of your loan, a 1.25% fee is charged.  Some loans made prior to December 1, 2008 may have a conversion fee of .50% based on their original contract. Check with your FCMA representative prior to any conversions.




Saving you money!

Last year, Farm Credit converted (or refinanced) nearly 24,000 customer loans (or $4 billion) slicing an average of .75% off our customers' interest rate costs.  The savings for customers was almost $92 million in interest expense over a three year period! That's the value of cooperative membership at work!

Call us to see if you are eligible for a conversion today!