Rates

Fixed

Fixed rate agricultural loans will have the rate of interest being charged on the loan “fixed” for a period of 5 days to 20 years. Fixed rates are also available on country home loans. The interest rate on all fixed rate loans can be fixed for the full term of the note. This allows you to know your annual interest expense throughout the life of the loan. Agricultural fixed rate loans are not subject to a prepayment penalty with the exception of large loans where a prepayment penalty is negotiated up-front with the borrower.

Variable

Variable rate loans are loans that have an interest rate that can vary up or down, during the term of the loan. The rate being charged on variable rate loans is tied with a particular “index”. These indexes allow you, the borrower, to judge for yourself, what potential movement there may be in the rate. These “indexes” are just that, an index. They are not the actual rate you will be charged on your loan.