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 20, 25 or 30-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 20, 25 and 30 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.
10/10 Adjustable Rate
This loan product works just like our 5/5, but the fixed period is 10 years. The pricing adjusts after 10 years to another 10-year fixed period (based on market conditions at the time) and there are 20, 25 or 30-year terms available. It can offer security with a longer fixed rate, but at a cost that is lower than a fully fixed rate. It could be a wise choice for producers who plan to pay down the loan more rapidly, not needing to pay for longer rate security.
15/15 Adjustable Rate
This adjustable rate loan provides the most rate security with the initial rate fixed for 15 years. After 15 years the rate will adjust to another fixed rate, based on market conditions at the time, for the remaining term of the loan. This loan is designed for producers who want more rate security, but at a rate that is lower than a fully fixed rate loan. The loan can have either 20, 25 or 30 years.