Ranch/Recreational Land Loans : This type of loan is helpful for people wanting to turn a tract of land into hunting grounds, a vacation spot, or a camper’s paradise.(More on that later.) What type of land loan is right for me?ĭepending on your geography, goals, and budget, there are several different types of land loans to choose from: The interest rate on a variable-rate loan will flex according to the market. In a fixed-rate situation, your interest rate stays the same for your whole loan period. Your interest rate will also depend on if you sign a fixed-rate or variable-rate loan. What you pay in the long run will be impacted by your interest rate, loan term, payment frequency, and more. The true, long-term cost of your land loan will not simply equal $50,000. Say you want to purchase a piece of land that’s priced at $50,000. (Unless you just have stacks of cash lying around.)īut there are layers to any land loan. Whether you plan to use the land to build a house, plant crops, or start another kind of agribusiness, you’ll likely need a land loan. What is a land loan?Ī land loan is money borrowed from a bank or other financial institution to purchase a piece of land. But it can be within your budget, with a little advance planning.īefore crunching the numbers, though, it’s helpful to understand exactly what a land loan is, the different types of land loans to choose from, and more info about Texas land loan rates. Owning productive, profitable, or just downright pleasant-to-live-on Texas land isn’t always cheap. So if you’re in the market for a land loan, farm loan, or agribusiness loan, a land loan calculator is a helpful tool to estimate your total interest and principal payments. With land prices in Texas on the rise, it’s important to understand exactly how much you can afford before signing your loan paperwork.
That’s where a land loan calculator comes in handy. Whatever you plan to use the land for, you need to pay for it somehow. So you’ve found your perfect acres: rolling hillsides for a cattle ranch, fertile soil for a new row-crop operation, or a beautiful tract of land to rent out to recreation enthusiasts. Construction, Farm, and Home Mortgage Loan Rates
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