# % interest you pay on your land and other ?



## Forestdude (Jun 9, 2012)

I bought my dream property here in Louisiana about 5 years ago. It's 50 acres, all bottomland hardwood, and there was a well and small shed here. I put 20% down and financed the rest with a local bank at 6% interest. I've since moved a mobile home here and have made a bunch of improvements. I've got 10 years left on land payments and 4 years left on the home payments (borrowed from retirement). My credit is good. 

1. So my question is, should I try to refinance, or is 6% good? (I know most banks don't like lending on large acreage and/or mobile homes)

2. What interest rate do you pay on your land/house and for how long?

3. Any other advice in getting my payment lowered or refinanced?

The main reason I ask is because I really would like to get a compact tractor, but funds are tight as it is. This wheelbarrow, shovel, lawnmower, weedeater,etc. stuff is getting a little more time consuming than I'd like. A tractor would make life so much easier, and make my place a lot nicer. Thanks in advance for your responses:gaptooth:


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## Pony (Jan 6, 2003)

You can usually find the average mortgage rates in your area by googling. I think that 6% through a bank is high, but I only know from improved real estate...

Couldn't hurt to have a chat with the bank holding your note. They may be interested in lowering your rate if they think you'll go elsewhere.


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## Dusky Beauty (Jan 4, 2012)

Average refi APR is like 3 or 4% right now, I think it'd be worth a try calling around.


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## Forestdude (Jun 9, 2012)

I went to my local bank a couple weeks ago and asked about refinancing. They told me the best they could do was to extend the loan to a 15 year balloon at the same interest rate.

I'd really like to combine the mobile home and land loan into a 15 or 20 year fixed loan at a lower interest rate...3% to 4% would be sweet:nanner: The guy said getting that would be tough to get at any bank He said with a stick built house on the land, I could get those lower fixed rates, but not with a trailer. Guess I'll try to get some papers together and go shop around.


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## Joshie (Dec 8, 2008)

The only way we were able to get a loan was through a small local bank that doesn't sell its loans. They only do seven year balloon loans. Fanny May won't buy loans on acreage so most banks won't do loans. We had to have at least 20% down.


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## tarbe (Apr 7, 2007)

My home mortgage is a couple years old, so not the best rate. It is a 15 year at 3.75%

If I did a refinance right now, I could get a 10 year at 2.8% (this is with an 835 credit score, ymmv). I am not going to do it because I expect to be out of this house within a year or so.

Land is paid off...but I did like you. I borrowed against my 401k and paid 4% to myself.

If your credit is decent, I would definitely try to find cheaper money! Do you have a local Credit Union you can join?


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## Forestdude (Jun 9, 2012)

I have explored the farm credit deal, and I don't understand it too well. Not sure if that is the way I should have gone in the first place? Everything I've read doesn't seem to be cut and dry. 

I'm getting my papers gathered up today, and I'm gonna clean up the boots and go talk to some banks this week. With the future of interest rates probably going up, I'd really like to lock in a fixed rate, even if it's still at 6%.


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## Belfrybat (Feb 21, 2003)

I doubt you will find a better rate on your land if the mobile home is tied into the loan. Very few banks are loaning on mobile homes at present. And if you were able to to re-finance, don't forget you will have all the closing cost fees to pay. I've never found that re-financing is a good deal, except for the mortgage companies.


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## debbydoo1966 (Jan 15, 2007)

I just refinanced last week. Got 3.75 down from 6.7 No points or closing fees, except 50.00 to registrar at town hall. Mine is a stick built house.


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## rickfrosty (Jun 19, 2008)

Forestdude said:


> I bought my dream property here in Louisiana about 5 years ago. It's 50 acres, all bottomland hardwood, and there was a well and small shed here. I put 20% down and financed the rest with a local bank at 6% interest. I've since moved a mobile home here and have made a bunch of improvements. I've got 10 years left on land payments and 4 years left on the home payments (borrowed from retirement). My credit is good.
> 
> 1. So my question is, should I try to refinance, or is 6% good? (I know most banks don't like lending on large acreage and/or mobile homes)
> 
> ...


Here at least, the combination of a large lot & a mobile home is going to be more than 6% - you may be about as good as you're going to get ?


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## Forestdude (Jun 9, 2012)

Today I called the only bank I've found that does farm credit loans. I'm gonna talk with a loan officer tomorrow, but I asked the lady on the phone if they did fixed rate loans on land alone and she said they did. I asked her what interest rates could possibly be obtained, and she was very hesitant to answer. I asked her to just tell me some of the rates she had seen on papers that passed her desk, and she finally said that she had just processed a fixed rate loan at 4.5% (not sure for how long, though). So this has renewed my hope a little. 

My trailer house isn't tied to the land, so if they wouldn't finance it, well, that'd be alright. I just really want to get out of my balloon loan as it resets next year. I'm concerned about interest rates rising in the future, and a fixed rate loan would give me peace of mind.

We'll see what I can learn tomorrow


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## Forestdude (Jun 9, 2012)

Talked with a loan officer today, and he said I could refinance with them and get a 10 year fixed rate loan at 4.25% to 4.5% for the land alone. He said they couldn't finance the mobile home, so I'll keep paying that back into my retirement I guess.

I'm so happy about this! It's gonna save me some money, and keep my payments stable. Anyway, just sharing the news


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## tarbe (Apr 7, 2007)

Excellent! Glad to hear it will work out favorably for you.

Good move!


Tim


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