Land Loan #1


10/1 ARM vacant rural/agricultural land loan

7.90% at 2 points

8.231% APR (Annual Percentage Rate)

The initial interest rate is fixed 10 years.  25 year amortization.  After the first 10 years, the loan adjusts annually for the next 5 years to a margin 4.125% over the 1 year LIBOR (London Interbank Offered Rate).  No pre-payment penalty.

This loan is for essentially vacant rural/agricultural land.  Barns and outbuildings OK, but no residences currently in place. No acreage limit.

We can do:

70% purchase, rate and term refinance, or cashout refinance if the amount of cashout is less than 25% of the loan amount.

55% cashout refinance for no limit on the amount of cash out.

The property needs to have some agricultural use.  Recreational properties OK if greater than 60 acres.

No minimum acreage on ag land, so smaller vineyard type properties OK, or acreage home sites with crops or fruit trees in production.

APR calculated using $500,000 loan amount.