5/5 Adjustable Rate
Producers can combine interest savings and 5-year security with this loan product. The term of the loan can be set for either 15 or 25-years. At the end of each 5-year fixed period, your loan rate adjusts (based on market conditions at that time) to another 5-year fixed period. This may be one of the most frequently used loan products for financing farm real estate in America. Its benefit is that you save on the loan rate by borrowing shorter on the rate curve. The 15 and 25 year options allow you breathing room to make your payments more affordable. As with all our products, a choice of payment plans and prepayment options is available.
3/3 Adjustable Rate
This loan product works just like our 5/5, but the fixed period is 36 months. The pricing adjusts every 3-years and there are 15 or 25-year terms available. It can offer great savings because you are borrowing at the very short end of the rate curve. It could be a wise choice for producers who have multiple loans, and can combine a strategy of using some fixed financing, along with the savings of a shorter term rate.
1/1 Adjustable Rate
Typically, this will be your lowest rate option due to the very short fixed rate period. This loan is designed for producers who can bear more interest rate volatility, and take the savings of playing short. Rates are adjusted each year based on market conditions. The loan can have either 15 or 25 years.
7/1 Adjustable Rate
If you like the idea of mid-term security, this loan product could provide longer fixed rate security with lower cost than a 10, 15 or 25 year fixed rate. After the initial 7-year fixed period, the loan reprices to a 1-year adjustable, and then resets every year for the remaining life of the loan. Amortization periods of 15 or 25 years are available.
5/1 and 3/1 Adjustable Rates
These loan products are similar to the 7/1. They can offer savings, but remember after their initial fixed rate period, all of them reprice annually.