Loan for hunting land...best rates?

[mills650]

Google "texas farm credit associations". Check the counties they cover and give them a call. Check the patronage rate. Just a little shopping around saved me 1% interest. That's $2500/year in your case.

[Ranger Link]

Good information. Thanks for posting.

[TXHunter12]

Too bad Codie you are restricted to a certain region. I bet there are several here including myself that would be trying to use you.

I had some land I wanted this year but didn't really know where to go.
It sold a month ago for a lot less that I expected. It made me sick!

[BSOB]

Google "texas farm credit associations". Check the counties they cover and give them a call. Check the patronage rate. Just a little shopping around saved me 1% interest. That's $2500/year in your case.

Ok will do. THanks

Too bad Codie you are restricted to a certain region. I bet there are several here including myself that would be trying to use you.

I had some land I wanted this year but didn't really know where to go.
It sold a month ago for a lot less that I expected. It made me sick!

X2!

[Codie]

Our standard lending guidelines have a lending area of Young Cnty and the 100 miles surrounding. Anything outside of that (but within the state of Texas) I must get approved through our banks Loan Committee. More than willing to go through our loan committee and see if a particular purchase outside of our standard lending territory is possible but you will have to complete the application process and have a signed/dated purchase contract in order for me to get a firm answer for you as the strength of the borrower and the details of the exact property you are buying will play into their decision as well

[Shallowater]

Ok I got the podcast downloaded. I was searching thru all the podcasts and could not find one titled anything like that.

Do you remember the title of it or when it was?

Thanks again

Maybe 3-4 weeks back. I'm not sure and I delete them once I listen to them.

[Shallowater]

Ok I got the podcast downloaded. I was searching thru all the podcasts and could not find one titled anything like that.

Do you remember the title of it or when it was?

Thanks again

Maybe 3-4 weeks back, I don't htink it was further back than that. It is later on in the show. I'm not sure and I delete them once I listen to them.

[TexasTK]

The way I looked at it the patronage refund on the loan basically lowered the interest rate by a 1/2% or so. I used Capital Farm out of Kenedy and have nothing but good things to say about the them.

[Shallowater]

I wish it was 100 acres

But I will not pay for a lease when I already own 50 acres that joins this land that I hunt on. This is heavily wooded land and joins my other 2 parcels. Quality deer have already been killed on my land.

I care more about owning my own land and having it in the family for years to come then leasing a place for trophy bucks.

I can do what I want on it without anyone telling me what to do. Plus I plan on building on my other land if I get this for place which will strictly be hunting.

I hear you on this one. There is nothing like being the boss on your own place, unless you are married and then you are probably second in command. All kidding aside, I think it a great investmment too. There may not be a better investment in this state than raw land...if you buy it right.

[Darton]

I used Land Loan Specialists and it was an awesome experience. I couldn't have asked for anything more.

[BSOB]

I got a quote from a local bank at 4.25% I think but it is not a fixed rate and it changes every 5 years and can increase or decrease up to 1%. If I could pay it off in 10 years that would be awesome, but I just dont see less then 15.

So prolly not worth it.

[Codie]

I got a quote from a local bank at 4.25% I think but it is not a fixed rate and it changes every 5 years and can increase or decrease up to 1%. If I could pay it off in 10 years that would be awesome, but I just dont see less then 15.

So prolly not worth it.

if you were going to have it for 15yrs and it could not change more than 1% per 5 year period then you are basically looking at an average of 5.25% for the entire 15yr period vs whatever the rate was at the farm credit location. If it was me and the farm credit location had that rate at a fixed and provided dividens annually then it would be a no brainer. You won't find many small town banks that offer a fixed rate for longer than 5-10 yrs on in-house loans. We are the only bank that I know of in our lending territory that does without selling it out to the secondary market.

[BSOB]

if you were going to have it for 15yrs and it could not change more than 1% per 5 year period then you are basically looking at an average of 5.25% for the entire 15yr period vs whatever the rate was at the farm credit location. If it was me and the farm credit location had that rate at a fixed and provided dividens annually then it would be a no brainer. You won't find many small town banks that offer a fixed rate for longer than 5-10 yrs on in-house loans. We are the only bank that I know of in our lending territory that does without selling it out to the secondary market.

Codie, could you explain this for me? Mainly the 25 years amortize..not sure what that is?

Our current rate for a land loan is 4.25%. This rate is the same for any length of the loan. However, it is not a fixed rate loan. It is an adjustable rate that is on 5 year adjustment periods. The rate can increase or decrease a maximum of 1% every five years. The adjustment rate is determined by adding 1.5% to the Prime rate in the Wall Street Journal. We can amortize these loans up to a maximum term of 25 years.

[Codie]

so if you do a 15yr note and it starts at 4.25% worst case scenario for you would be

yrs 1-5 - 4.25%
yrs 6-10 - 5.25%
yrs 11-15 - 6.25%

That is an average over the life of the 15yr loan of 5.25% (obviously this is not exact because you are going to be paying more interest towards the beggining of the loan term when your interest is down at 4.25% than you are at the end when your rate is 6.25%,which is not accounted into this). This is just the simple math.

I am a fixed rate fan myself (just because I keep track of all of my financial stuff and if my loans are on a fixed rate I don't have to even think about when they might/might not adjust and to what interest rate). Just keeps things more simple and straight forward which is always a good thing. I was just saying that if I had the option between this type of loan with an avg of 5.25% interest or a straight 15yr fixed at 5.25% I would go with the fixed at 5.25% if nothing else just because of the simple, straight forward layout of the loan terms. That is my personal opinion, not my financial advise to you

[BSOB]

so if you do a 15yr note and it starts at 4.25% worst case scenario for you would be

yrs 1-5 - 4.25%
yrs 6-10 - 5.25%
yrs 11-15 - 6.25%

That is an average over the life of the 15yr loan of 5.25% (obviously this is not exact because you are going to be paying more interest towards the beggining of the loan term than you are at the end which is not accounted into this). This is just the simple math.

I am a fixed rate fan myself (just because I keep track of all of my financial stuff and if my loans are on a fixed rate I don't have to even think about when they might/might not adjust and to what interest rate. Just keeps things more simple and straight forward which is always a good thing. I was just saying that if I had the option between this type of loan with an avg of 5.25% interest or a straight 15yr fixed at 5.25% I would go with the fixed at 5.25% if nothing else just because of the simple, straight forward layout of the loan terms.

And I agree completely. I guess it is how bad do I want to take a chance? And when do I realistically think I can have it paid off in.

Capital Farm Credit offered 5.7-5.9% with 30% of interest coming back to me. Which would also lower what I am paying in the end of it all.