Land loan refinancing

As the Fed has lowered interest rates in the last month to help the economy during the virus outbreak, I figured it might be a good time to see about getting a better interest rate on my land loan. I called our land bank and the officer said things are in a lot of flux right now and while they could give quite a bit lower rates on a 5 year loan, they were still trying to figure out things for the longer 15 or 20 year notes on land.

I feel with the drop in rates by the Fed, longer term land loans should drop and we might be able to save a few bucks by refinancing. The banker did say it might be as low as 250 dollars to refinance. I plan on emailing the guy about every couple of weeks to see what happens.

Ringtail,

If you are interested in another quote on rates, I'd be happy to visit with you. I work for AgAmerica Lending and we have several rate options to choose from.

Ringtail -a rate conversion is probably your best bet right now. Origination fees/closing costs, even in light of lower rates may not pay off in the end. Visit with your current lender about all options.

Land$ - are you offering 15-20 year fixed rate loans? What type of LTV for a borrower?

Tru_texan36 - we can offer fixed rates all the way out to 30 years, We can do interest only for periods of time and revolving lines of credit secured by real estate along with many other options. As to LTV it ranges based on product type and credit quality.

Your point on a rate conversion is very true depending on what their current rate is.

I think that what my banker was talking about was a rate conversion as it was only going to cost $250. I think the 5yr fixed rate he quoted was 4.75%. Our loan is through a co.op land bank and they did send a profit sharing check equivalent to about 1/157th of my balance on the loan.