Long-term ag real estate loans are our single product, we do not offer operating loans, equipment, or construction loans.
When choosing a farm mortgage loan product, you need to pick a product that fits your individual needs. If there is any probability that you will need to pre-pay, or refinance in advance of maturity, then you don’t want a fixed rate product. Pick an ARM (Adjustable Rate Mortgage) that fits your plans.
However, if rates are low (relative to the last 10 years) and you have no plans to pay the note in advance of its scheduled payments, then a longer term fixed rate makes sense for your needs. We offer ag loans with fixed rates for up to 15 years on 10, 15, 20, and 25 year amortizations.
We offer various ARM products, meaning the rate is subject to change at some point in the future. This may be 3, 5, 7, or 10 years away but the rate will change prior to the maturity of the note. Some of our ARM products become an annual adjustable mortgage at that time, and others simply roll over for an additional 3 or 5 year period. Amortizations for our ARM products range from 10-25 years as needed.
The majority of our products are listed on our interest rate page. You will note that the longer you wish to fix the rate, the higher the interest rate. When comparing rates and terms, it is important that you compare like products.
Associated Farm Mortgage, Inc. offers a wide variety of Agriculture real estate mortgages. In all cases we require a first lien position on the collateral property. The collateral must be land that has some type of real agricultural production. It can be as simple as grazing pasture but cannot just be land without production. We do not offer development or speculation land loans.