Refinancing the Farm/Home

suburbhunter · Jun 5, 2019

For those of us that have to finance, and with interest rates dropping, anyone looking at refinancing the farm/home? In particular the farm? I bought my farm little over a year ago in Ky and rates are looking very attractive with what Farm Credit in Bowling Green, Ky has to offer. I could knock a few years off the loan and save a ton in interest for about $35 more a month. Pretty much a no brainer. Anyone else on the hunt?

Buckeye · Jun 5, 2019

What’s the interest rate you are getting?

MarkDarvin · Jun 5, 2019

suburbhunter said:
For those of us that have to finance, and with interest rates dropping, anyone looking at refinancing the farm/home? In particular the farm? I bought my farm little over a year ago in Ky and rates are looking very attractive with what Farm Credit in Bowling Green, Ky has to offer. I could knock a few years off the loan and save a ton in interest for about $35 more a month. Pretty much a no brainer. Anyone else on the hunt?

Have you heard if they charge you the full slate of fees like a first time finance? I'd half consider it, but they'd take about 5% in fees to do it if it goes like the first time. I just kicked up my payment to speed things along instead. I have a small loan, so perhaps the fixed costs of it bite me harder.

suburbhunter · Jun 5, 2019

Yes. There are closing costs involved. I don’t know what they exactly are yet. It’s great to pay extra if one is that disciplined.

dogghr · Jun 6, 2019

Consider all the costs before refi and ck all the banks, they can be quite competitive. I used to know what the change in interest rate needed to be to make it worthwhile to refi but don't any more. Seems it was nearly a 1% chg to make it worth while. To make you feel better , my business loan in '81 was locked in at 16%!!! Many were paying over 20%. My first house mid 80s was 12%. So I laugh at the whining of rates going up 1/4%. Just old man talk, sorry, but appreciate what we have in interest rates these days. Almost free money relative speaking.
Many retirees in those days were living on CD interest rates as you could draw 8-12% return on a standard CD.

MarkDarvin · Jun 6, 2019

dogghr said:
Consider all the costs before refi and ck all the banks, they can be quite competitive. I used to know what the change in interest rate needed to be to make it worthwhile to refi but don't any more. Seems it was nearly a 1% chg to make it worth while. To make you feel better , my business loan in '81 was locked in at 16%!!! Many were paying over 20%. My first house mid 80s was 12%. So I laugh at the whining of rates going up 1/4%. Just old man talk, sorry, but appreciate what we have in interest rates these days. Almost free money relative speaking.
Many retirees in those days were living on CD interest rates as you could draw 8-12% return on a standard CD.

Low rates don't mean prosperity for anyone. It just gives the dumbest among us more power to bid up prices to maximum loanable levels our cashflows can sustain. It'd be nice if interest rates would normalize so the savers and investors wouldn't be getting the shaft for once.

Chainsaw · Jun 6, 2019

Low interest rates suck! They are un-american and un-natural.

g squared 23 · Jun 6, 2019

It normally just makes more sense to me to increase your payment, you rarely save a ton on a refinance. If you don’t have the discipline, just increase the amount that gets automatically taken out so there’s no chance to waste it on junk.

When my student loans are paid off (August ‘19), I’m going after the house and farm mortgages with a vengeance. Keep living small, so I can eventually save for and buy more land.

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Refinancing the Farm/Home

suburbhunter

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Buckeye

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MarkDarvin

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suburbhunter

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dogghr

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MarkDarvin

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Chainsaw

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g squared 23

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