PREPAYMENTS - Open prepayment on all loan products through the 15 year products shown above, but open products require interest to be paid to the next payment. The 20, 25 and 30 year fixed rate products have prepayment penalties and the following lockout periods: The 15, 20, and 25 year PL's have a lockout period of 5 years. The modified full lockout (ML's) products have a lockout period equivalent to the initial fixed period. ML's include a 10% annual prepayment option. Please check with us as to loans with prepayment penalty options that might have lower rates. PAYMENT DATES – Semi-annual payments are January 1 - July 1 or April 1 – Oct. 1. Monthly payments are the first of each month. Annual payment option is available on all Loan Types (15 bp premium) except ARM’s. ARM PRODUCTS (Indexed) – The 7/1 and 10/1 ARM’s have a fixed interest rate for first 7 or 10 years. Rate adjusts annually thereafter. Ag Equity, 1 Month, 1, 3, and 5 year ARM’s adjust to an interest rate term equal to the initial interest rate term.
VRM PRODUCTS (Non-Indexed) – 10 year VRM’s have a fixed interest rate for 10 years and adjusts every 10 years thereafter to an interest rate term equal to the initial interest rate term. Term and Amortization must be equal.
OPERATING LINES OF CREDIT - Products setup on either 5 year or 10 year interest only notes. Semi-annual interest only payments. Loans can be used for any agricultural purpose (operating, equipment purchases, improvements, land purchases). Loan can be drawn and paid back as needed during the initial terms. The 5 year notes automatically convert to fixed product upon maturity. The 10 year products are due in full at maturity, but both products can be converted to long term products during the terms. Loan terms (and amortizations) can be up to 30 years on 10 year products and 25 year on 5 year products. Loans are limited to 50% of appraised value, but building improvement values must be eliminated from valuation. INTEREST RATES – ARM rates are effective for the above dates. All other Loan Type rates are determined at time of rate lock. Loans may be rate locked any business weekday from 10:00 AM to 2:00 PM CST.
CONVERSION OPTION – Borrower may elect to convert an ARM of Fixed Rate product to another ARM or VRM product. Multiple conversions are allowed. PREMIUM RATES – Premium rates must meet higher underwriting standards.
LOAN SIZE - Minimum loan size is $150,000. Maximum depends on security and credit factors. The 20 to 30 year fixed rates will have higher rate below $500,000.