When searching for a mortgage for agricultural land, it is always important to talk to a mortgage broker to ensure that you are getting the appropriate mortgage for your situation. Although there are many similarities between agricultural mortgages and consumer mortgages, agricultural mortgages are specifically designed to cater to the needs of rural landowners.
The majority of mortgage companies restrict the number of acres that they are willing to include in the appraised value of an agricultural property when they are considering providing a mortgage. Currently, for qualified borrowers, our lenders may allow the residence, a garage, and up to 80 acres of farmland to be included when determining the value of the property.
As with other types of properties, mortgage rates offered by agricultural mortgage lenders vary based on a variety of factors, which include the financial qualifications and credit worthiness of the borrower, current market conditions, mortgage type, the principal amount, and the equity value of the property.
We offer two types of agricultural mortgages: a fixed mortgage and a variable rate mortgage. Fixed mortgages have a set interest rate that can be slightly higher than that of variable mortgages, however, with a fixed mortgage you are guaranteed that your interest rate will never change during the term of the mortgage. In contrast, a variable mortgage offers a mortgage rate that changes depending on market conditions, which could be challenging for a strict farming budget as your monthly mortgage payments can fluctuate.
We provide mortgage and loan financing for:
- Operating Capital
- Equipment Purchases
- Solar Energy and Wind Energy Projects
- Farmland Purchases
- Land Tiling and Improvement
- Equipment Storage, Feed Storage, and Grain Storage
- Livestock Buildings for Beef, Dairy, Poultry, Swine, and Equine
- Agri-business Financing
- Debt Management
Agricultural Mortgage Refinancing
If current mortgage interest rates are lower than your present mortgage interest rate, it may be wise to consider refinancing at the lower rate, even if you incur a penalty to pay out your present mortgage. The professionals at Unimor Capital would be pleased to meet with you and help you determine whether agricultural mortgage refinancing would benefit you.
Furthermore, you may be able to use the equity in your farm property for other purposes, such as debt consolidation, purchasing farming equipment, or even financing your child’s wedding or university education.
If you are interested in more information about an agricultural mortgage or refinancing your current mortgage with Unimor Capital Corporation, please contact one of our professional mortgage agents or submit an online mortgage application today.