Which product is right for you?
The Rate Saver is Farm Credit's way to save money on your mortgage loan! With this product, your interest rate can be a quarter to one-half percent lower and that translates into thousands of dollars saved over the life of your loan. By agreeing not to make early principal payments during the first 2 years of your loan contract, your interest rate will be reduced. In today's rate environment, this might be the right product for you.
Convertible Rate Loans
Aconvertible rate loan offers a blend between savings versus security. You choose a fixed rate period that you're comfortable with and get the savings for opting for a shorter period. For example, with the 5/30 Convertible Loan, your loan rate is fixed for 5 years with the length of your loan up to 30 years. You enjoy the savings of a lower initial rate compared to 20- or 30-year fixed rate loans.
- You choose a 5-, 10- or 15-year initial fixed rate period.
- Loans can have terms up to 30 years making your monthly payments less.
- Convertible rates are often lower priced than conventional fixed rate loans.
Fixed Rate Loans
These products provide a fixed rate for the entire life of the loan. If rates should drop in the future, you may be able to convert to a lower-interest rate loan.
- Provide security of a full fixed rate that never changes.
- Available for 10, 15, 20, 25 or 30 years with matching terms.
- Rates can be locked-in before closing, giving you the advantage of a low market.
Adjustable Rate Loans
Commonly referred to as ARMs, you can select a 30-day adjustable rate that can change up or down each month. Another product is the 1-year Convertible rate mortgage. This loan features a fixed rate for 12 months which re-prices annually. There's a limit (or cap) on how much your interest rate can adjust each year and over the life of the loan.
- Offer greater savings than the fixed rate and the convertible rate mortgages.
- You can convert to a fixed rate at any time.