Farm Loan Products
3-month Adjustable
This product offers low interest rates, open prepayment, and no balloon payment. The interest rate adjusts every 3 months based upon its pricing index plus an established margin. Maturity of the loan can be set for any amount of time between 5 and 20 years or 25 years and can be converted to other products for a 1% conversion fee. This product is tied to LIBOR and has monthly, semi-annual, and annual payment options.
6-month Adjustable
Offering open prepayment, the interest rate on this loan is fixed for 6 months, adjusting every 6 months based upon its pricing index plus an established margin. Like most short-term rates, this rate is attractive to the customer interested in reducing debt quickly and is good customers with low leveraged operations and highly liquid assets. This product is tied to the LIBOR. Term of the loan is 15 years with a choice of 15-year or 25-year amortization. Payments are semi-annual, due in January and July.
1-year Adjustable
Open prepayment and low interest rates may make this product appealing. Fixed for 1 year, the interest rate on this loan rolls to another 1-year fixed rate period for the life of the loan; the rate is based upon its pricing index plus an established margin. Available terms are flexible, being any length of time between 5 and 25 years with varying amortization lengths. This product can be tied to the United States Treasuries, Farm Credit Bank Funding Corporation bonds, or the Prime Rate. Payment options are monthly, semi-annually, or annually.
3/1, 5/1 Adjustable
Looking for a product to help meet your debt reduction plan? These 2 products offer rate stability with attractively low rates fixed for the short-term and open prepayment. The rate is fixed for the initial set term of the loan, 3 and 5 years respectively, then rolls to a 1-year Adjustable rate each year thereafter for the balance of the loan’s term. The initial fixed term of the loan has rates tied to the United States Treasuries or Farm Credit Bank Funding Corporation bonds; the 1-year Adjustable rate is tied to LIBOR plus an established margin. Terms offered with this loan are 15 years with a choice of 15-year or 25-year amortization. Payments are semi-annual, due in January and July.
3-year, 5-year, 7-year Adjustable
These products offer attractive interest rates and rate caps for the customer interested in long-term financing, but not long-term rates. Presenting a rate fixed for the adjustable term of the loan, the rate then adjusts each respective period for the life of the loan rather than annually as the 3/1, 5/1 Adjustable products. All 3 products can be tied to the United States Treasuries or Farm Credit Bank Funding Corporation bonds; the 3-year and 5-year term can also be tied to the Prime Rate. Terms available for these loans can be any length of time between 5 and 25 years with varying amortization lengths. Payments are monthly, semi-annually, or annually.
7/1, 10/1 Adjustable
For the security-minded customer, this product offers rates lower than long-term rates, yet still fixed for a longer term with open prepayment. Fixed for the initial fixed term of the loan, the rate then rolls to a 1-year Adjustable rate that is tied to LIBOR plus an established margin. This product can be tied to the United States Treasuries or Farm Credit Bank Funding Corporation bonds. Terms offered with this loan are 15 years with a choice of 15-year or 25-year amortization. Payments are semi-annual, due in January and July.
10-year, 15-year, 20-year, 25-year, 30-year Fixed
Ideal for the long-term-minded customer, we offer several different terms with our fixed rate products. The 10-year, 20-year, 25-year, and 30-year fixed rate products are fully amortizing and have no balloon payment. The 15-year fixed rate product has 15-year or 25-year amortization. Partial open prepayment applies, or a slightly lower interest rate is available with full yield maintenance. Interest rate caps are available. This product can be tied to the United States Treasuries or and Farm Credit Bank Funding Corporation bonds. Payments options are monthly, semi-annually, or annually.
Pricing Index
A commonly published rate used to calculate the rate in your note at closing and at any interest rate change date.
Treasuries
Rates are tied to United States government securities, specifically, the weekly average yield on Treasury constant maturities series as quoted in the H.15 of the Federal Reserve Board (www.federalreserve.gove/releases/h15/update) published for each applicable product.
LIBOR
LIBOR is the London Interbank Offered Rate, a global index that is commonly used to price loans around the world.
Prime Rate
Prime Rate is the interest rate charged by banks to their most creditworthy customers. The Prime Rate is quoted daily in