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Agricultural Real Estate Loans
Agricultural Real Estate Loans are long-term mortgage loans that provide a stable source of capital for financing real estate assets. These loans can be used to finance or refinance items such as:
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Farm land
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Improvements to farm land
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Agricultural structures/buildings
Loan terms range between five and 30 years and are available in either fully amortize or equal principal payment plans. You may be eligible GreenStone Agricultural Real Estate Loan if you are any one of the following:
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Full-time farmer
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Part-time farmer
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Non-farmer such as landlords, investors, land trusts and retired farmers who own or are purchasing agricultural real estate
On the Spot loans (also known as OTS) is a fast and easy way you can apply for an agricultural real estate loan. OTS allows you to go from the application process to an approved loan in very little time. The applicant is subject to meet certain criteria. This application can be submitted in any of our branch offices. The benefit to you is speed and convenience.
Tools
Use our loan calculator to estimate your
payment amount.
Use our maturity date loan calculator
to select a maturity date for a loan amount and determine the
amortization period in years and months.
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Features and Benefits of Agricultural Real Estate Loans
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Feature
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Benefit
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Loan terms between 5 & 30 years
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Your payments are manageable by matching our flexible terms to your ability to make periodic payments.
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Payments can be scheduled to be due monthly, quarterly, semiannually or annually
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Your payment terms can be set to match the cash flow of your operation.
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Loans are convertible to other pricing options
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Presently we offer a conversion option that allows you to change from one interest rate product to another at any time. While a fee may apply in certain situations, this option is generally less costly and simpler than refinancing your loan.
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Simple Interest
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You pay interest on your actual funds borrowed only. Unless specifically stated, you can make advance principal payments on your loan at anytime, which reduces your total interest cost.
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Advance payments can be placed into Funds Held, which earns interest
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When you have excess cash, you can deposit the money into your Funds Held account, which can be used to make your future mortgage payments, taxes or property insurance. You earn a competitive interest rate on these funds as determined by GreenStone.
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Loans are owned and serviced by GreenStone
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Your loan is serviced by your local GreenStone office. We are here to assist your during the life of your loan.
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PAID option: Automatic withdrawal of payments
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Our PAID option allows your payments to be automatically deducted from your bank account, which saves you time and gives you peace of mind that your payment will be received timely.
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Loan is fully assumable
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This means if you decided to sell your property, a qualified buyer could assume your mortgage. This is very attractive to a lot of buyers and could make your property easier to sell.
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Frequently Asked Questions about Agricultural Real Estate Loans
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Question
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Answer
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Can my loan be called at any time?
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No, your loan terms are guaranteed until maturity, which may run between 5 and 30 years. Other lenders may change the loan terms or may require a balloon payment prior to the maturity of the loan. With a GreenStone Ag Mortgage, as long as you meet the terms of your note and mortgage your loan can not be called.
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Can I prepay my loan without a penalty?
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This depends on the loan product you select. However, most products have no prepayment penalty. Those products with a prepayment penalty are clearly identified below.
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Why must I buy stock?
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When you borrow money from GreenStone, you purchase a stock ownership in the cooperative. Our current stock requirement is 2% of the loan balance or $1,000 per customer, whichever is less. Your stock purchase entitles you to an equal vote in the election of our directors and on other matters requiring stockholder votes. Your investment also provides a capital base, which allows GreenStone ready access to funds from Wall Street. Our current practice is to retire stock when your loan is paid off.
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Agricultural Real Estate Interest Plans
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Interest Type
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Index
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Repricing Frequency
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Maturity Min/Max
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Comments/Features
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Variable/30-day Adjustable
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Rate is quoted weekly by GreenStone.
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Monthly
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5-30 years
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Low rate with no conversion fee.
Very flexible option.
No prepay penalty.
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Prime Indexed
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Prime Rate as quoted in the Wall Street Journal
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Monthly based on Prime as of the 10th of previous month.
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5-30 years
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Bill rate can be indexed to Prime for 1 or 3 years.
At the end of the 1 or 3-year period, the margin will automatically reset to the current margin in effect.
No prepay penalty.
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Indexed Adjustable Rate Mortgage (ARM)
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Initial rate quoted weekly by GreenStone. At repricing, rate is indexed to 1, 3, or 5 year Federal Farm Credit Bank Index, as of 45 days prior to rate change.
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1 year
3 years
5 years
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5-30 years
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Caps:
2% annual & 6% life - 1 yr
2% & 6% - 3 yr
2% & 6% - 5 yr
2% & 6% - 7 yr
No prepay penalties.
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Adjustable
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Rate is quoted weekly by GreenStone.
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1 year
2 years
3 years
5 years*
7 years*
10 years*
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5-30 years
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At repricing, loan automatically re-prices to same product code.
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Fixed
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Rate is quoted weekly by GreenStone.
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N/A
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10 years*
15 years*
20 years*
30 yr**
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These loans do not re-price.
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* Available in No Prepay, Prepay and Prepay - Make Whole rate options.
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