Product Definitions - Farm Land

Below is a definition of farm land products available.  Most of our rates can be reduced further your if you enroll in the Flex Program. This reduced rate is available by agreeing not to make early principal payments during the first 3 or 5 years of your loan contract.

Adjustable or Convertible Rates

These are mortgage loans where the interest rate is fixed for a set period.  At the re-pricing date, the rate is reset to the current rate for the selected period.  This process continues until the maturity of the loan. This is the right product for you if you want to lock in a rate for a selected period of time, but do not want to pay the higher rate required on a fully fixed rate loan.  These loans offer fixed pricing terms of 1, 3, 5, 7, 10 and 15 years with maturities between 5 and 25 years.

Fixed Rates

These mortgage loans offer a fixed rate for the life of the loan. Fixed rate loans are offered for terms of 10, 15, 20, 25 and 30 years. If you are interested in achieving absolute interest rate security, this project is for you.  You never need to worry about interest costs increasing.  And, this product offers conversion opportunities, so you are not locked into a higher rate should interest rates fall.  Fixed rate loans can be converted to other loan products when interest rates play in your favor.

Variable Rates

With our variable product, the interest rate may change monthly. The rate is based on the rolling average interet rates of 3- and 6-month Farm Credit Bonds.  Rate changes may offer at the first of every month and you are notified of rate changes 10 days in advance of their effective date.  This is a competitive interest rate often priced lower than other products which minimizes your interest expense.  You can also convert to a fixed rate loan whenever you desire without having to refinance or pay closing costs.

Libor Rates

Libor (London Interbank Offer Rate) is one of the most widely traded and accepted indices in the world. For many, it is a more reflective barometer of the true cost of borrowing.  Libor is unlike Prime in that its minute-by-minute trading immediately follows global economies.  This rate is also reported in the financial press so it is easily monitored.