Loan for hunting land...best rates?

[Codie]

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.

I ain't taking ANY chance with the economy we are in - there is ONLY 1 direction that the prime rate is going to go from where it is right now. If I can get 5.7-5.9% + 30% of my interest back over the term of the loan on a 15yr fixed rate loan compared to a 15yr note that is going to adjust periodically and bring me somewhere close to the same NET interest rate over the entire term of the loan then I am going with the fixed rate every time.

Now if the periodically adjusting 15yr note was going to possibly save me 2% interest then it would become a little tougher decision and one that I would want to sit down with a calculator and figure out

[BSOB]

I ain't taking ANY chance with the economy we are in - there is ONLY 1 direction that the prime rate is going to go from where it is right now. If I can get 5.7-5.9% + 30% of my interest back over the term of the loan on a 15yr fixed rate loan compared to a 15yr note that is going to adjust periodically and bring me somewhere close to the same NET interest rate over the entire term of the loan then I am going with the fixed rate every time.

Now if the periodically adjusting 15yr note was going to possibly save me 2% interest then it would become a little tougher decision and one that I would want to sit down with a calculator and figure out

Agree. So what does it mean when he said 25 years and amortize?

THank you by the way for all the help

[Codie]

Agree. So what does it mean when he said 25 years and amortize?

THank you by the way for all the help

It means (if I am understanding correctly) that whether you choose to do a 5yr loan or a 25yr loan that they can amortize the loan payments for 25yrs, which means your note is only 15yrs long, but the payments are calculated as if the note was 25yrs long, which would mean the note would NOT be paid in full at the end of 15yrs when the note matured and you would have a balance sitting there that you would either have to come up with to pay the loan off at the end of the 15yrs or re-finance once the original 15yr note matures. If you consider this option make sure that you take into condideration that if you were to re-finance that balance at the end instead of paying it off that it is going to cost you closing cost AGAIN, which depending on the balance left to re-finance can cost you several thousand $.

He is basically just telling you that they CAN do a balloon note if you want the payments to be lower. Any note where you can make the required payments for the term of the loan and it still does not pay it off in full and leaves a balloon payment/balloon balance at the end is a balloon note. I am not a fan of balloon notes personally - I think there are other products that can achieve the same purpose without FORCING the customer to re-finance the balance and incur closing cost over again down the road in the future if they don't have the cash to pay the balloon balance off at the end of the note

[txlawdog]

Capital Farm Credit is the only one's I know of.

They were really pretty easy to work with for me. Once my paperwork was in I was approved in less than 36 hours. There was a lot of financial records required but otherwise was pretty painless. That was in June 2012. Not sure how things are going these days.

[BSOB]

It means (if I am understanding correctly) that whether you choose to do a 5yr loan or a 25yr loan that they can amortize the loan payments for 25yrs, which means your note is only 15yrs long, but the payments are calculated as if the note was 25yrs long, which would mean the note would NOT be paid in full at the end of 15yrs when the note matured and you would have a balance sitting there that you would either have to come up with to pay the loan off at the end of the 15yrs or re-finance once the original 15yr note matures. If you consider this option make sure that you take into condideration that if you were to re-finance that balance at the end instead of paying it off that it is going to cost you closing cost AGAIN, which depending on the balance left to re-finance can cost you several thousand $.

He is basically just telling you that they CAN do a balloon note if you want the payments to be lower. Any note where you can make the required payments for the term of the loan and it still does not pay it off in full and leaves a balloon payment/balloon balance at the end is a balloon note. I am not a fan of balloon notes personally - I think there are other products that can achieve the same purpose without FORCING the customer to re-finance the balance and incur closing cost over again down the road in the future if they don't have the cash to pay the balloon balance off at the end of the note

Yeah that seems pretty pointless to me.

I think I am going to try to do a 15 year note and pay it off before then. I just found out I will be having more means to help me pay this

So assuming that, you think it is better to do the local bank starting at 4.25%? I am going to look further into them and more about it because with an average of 5.25% at best it will be lower.

I will also have to sit down and see how much the "patronage" refund saves me in terms of interest points thru CFC