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Interest rate on land loan
#7069985
02/08/18 12:12 AM
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Joined: Dec 2014
Posts: 442
aggiegolfer09
OP
Bird Dog
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OP
Bird Dog
Joined: Dec 2014
Posts: 442 |
anyone bought land recently? Just curious about what the interest rate is on rural land in Texas. I am looking for at some land around 150k to 200k and I do have good credit.
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Re: Interest rate on land loan
[Re: aggiegolfer09]
#7070007
02/08/18 12:38 AM
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Joined: Dec 2006
Posts: 1,099
TTT Ranch
Pro Tracker
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Pro Tracker
Joined: Dec 2006
Posts: 1,099 |
I have very good credit and will be closing on 319 acres in the next 2 weeks. I got 4.875% on a 15 year fixed.
Last edited by Get outdoors; 02/08/18 12:42 AM.
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Re: Interest rate on land loan
[Re: TTT Ranch]
#7070232
02/08/18 03:08 AM
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Joined: May 2014
Posts: 261
kshorthairs
Bird Dog
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Bird Dog
Joined: May 2014
Posts: 261 |
Congrats on your upcoming closing!
In reference to the post, I sent you a PM.
Brandon Azuelo - Land Specialist/Sales Agent in Texas & Oklahoma No Fences Land Company 3500 Highway 121 Bedford, TX 76021 Cell: 972.800.7773 Email: brandona@nofencesland.com Web: http://www.nofencesland.com/
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Re: Interest rate on land loan
[Re: aggiegolfer09]
#7070248
02/08/18 03:16 AM
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Joined: Aug 2016
Posts: 2,451
Dalroo
Veteran Tracker
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Veteran Tracker
Joined: Aug 2016
Posts: 2,451 |
Go with a land bank and consider the patronage rebate when you calculate actual rate. We used Central Texas Farm Credit and they've been great. Rate in high 4s, but with patronage we get an annual profit sharing "rebate" that makes the actual cost of money much better.
Dalroo Deep in the Heart of Texas How about that Brandon!
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Re: Interest rate on land loan
[Re: Dalroo]
#7070272
02/08/18 03:25 AM
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Joined: May 2014
Posts: 261
kshorthairs
Bird Dog
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Bird Dog
Joined: May 2014
Posts: 261 |
Exactly who I recommended. Each farm credit agency has their own territory and have been great to work with for years!
Brandon Azuelo - Land Specialist/Sales Agent in Texas & Oklahoma No Fences Land Company 3500 Highway 121 Bedford, TX 76021 Cell: 972.800.7773 Email: brandona@nofencesland.com Web: http://www.nofencesland.com/
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Re: Interest rate on land loan
[Re: aggiegolfer09]
#7070710
02/08/18 04:08 PM
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Joined: Mar 2009
Posts: 4,574
deewayne2003
Extreme Tracker
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Extreme Tracker
Joined: Mar 2009
Posts: 4,574 |
Closed little over a year ago and got 5% fixed for 15 years(first time buyer), used the local bank in the town close to the property and was really pleased with the customer service.
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Re: Interest rate on land loan
[Re: aggiegolfer09]
#7070761
02/08/18 04:49 PM
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Joined: Nov 2014
Posts: 7,787
Mr. T.
THF Trophy Hunter
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THF Trophy Hunter
Joined: Nov 2014
Posts: 7,787 |
Go with any land bank or AG credit place. Only problem is that they require 20% down. I've used them twice. Two different ones as they generally have a county or two that they cover.
Cabin rental in Pagosa Springs, Co. Sleeps 10, If interested please PM me.
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Re: Interest rate on land loan
[Re: aggiegolfer09]
#7070767
02/08/18 04:54 PM
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Joined: Mar 2007
Posts: 5,225
Rustler
THF Trophy Hunter
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THF Trophy Hunter
Joined: Mar 2007
Posts: 5,225 |
I'd always at least check with a few local banks, our last 2 purchases they've beaten the land bank/farm credit places.
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Re: Interest rate on land loan
[Re: Rustler]
#7070804
02/08/18 05:36 PM
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Joined: Nov 2014
Posts: 7,787
Mr. T.
THF Trophy Hunter
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THF Trophy Hunter
Joined: Nov 2014
Posts: 7,787 |
I'd always at least check with a few local banks, our last 2 purchases they've beaten the land bank/farm credit places. Really, I guess it pays to shop around. My son in law is a bank president and he could not get with in 2% of what the land bank gave me, however that was 5 years ago. But checking all your loan options is always a good ideal.
Cabin rental in Pagosa Springs, Co. Sleeps 10, If interested please PM me.
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Re: Interest rate on land loan
[Re: aggiegolfer09]
#7070827
02/08/18 05:52 PM
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Joined: Mar 2007
Posts: 5,225
Rustler
THF Trophy Hunter
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THF Trophy Hunter
Joined: Mar 2007
Posts: 5,225 |
Thats why I said " at least check with a few local banks " local to the area you're buying.
Not at all knocking the Ag credit / land bank types, we've used them too.
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Re: Interest rate on land loan
[Re: Rustler]
#7071440
02/09/18 02:03 AM
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Joined: Jan 2013
Posts: 1,833
sparrish8
Pro Tracker
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Pro Tracker
Joined: Jan 2013
Posts: 1,833 |
I'd always at least check with a few local banks, our last 2 purchases they've beaten the land bank/farm credit places. We used Peoples state bank in Rocksprings and they were much easier to get approved from and had lower rates then CFC.
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Re: Interest rate on land loan
[Re: aggiegolfer09]
#7076450
02/13/18 05:05 AM
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Joined: Sep 2008
Posts: 187
cowboyway
Woodsman
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Woodsman
Joined: Sep 2008
Posts: 187 |
Good info here. Thanks guys.
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Re: Interest rate on land loan
[Re: cowboyway]
#7078698
02/14/18 11:27 PM
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Joined: Jul 2013
Posts: 7,179
therancher
THF Trophy Hunter
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THF Trophy Hunter
Joined: Jul 2013
Posts: 7,179 |
when you factor in the patronage I've never seen any bank beat a farm credit bank. I've seen some farm credit banks beat other farm credit banks. But never a conventional bank. Patronage easily knocks off 1-2% annually. And they are already lower than other banks before that.
It does pay to shop. Shopping for money is almost as important as researching for land. But I've been in the ranch buying selling business since '96 and have bought and sold ranches in 8 different counties. And if you beat 4.1 or 4.2% right now with an annual patronage check that lowers that to 2.1-3.1% you let me know. I'll go buy some more land.
Crotchety old bastidge
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Re: Interest rate on land loan
[Re: aggiegolfer09]
#7082226
02/17/18 02:09 PM
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Joined: Dec 2006
Posts: 1,099
TTT Ranch
Pro Tracker
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Pro Tracker
Joined: Dec 2006
Posts: 1,099 |
Most of the land banks are in the upper 5’s after the latest Fed rate hike. I chose Graham Savings and Loan on a 15 year fixed at 4.875% bc I look at it as a “bird in the hand” type deal. I’d rather hold the extra $ all year as opposed to having the land bank hold it and return a little bit to me each year.
Also, if you are in the market to buy, Graham Savings will allow you to only put 15% down if needed.
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