Pros and Cons Related To Home Equity Loans

With the refinance craze that has swept the country for the past few years many people have gotten caught up in the hype surrounding these types of loans. But before anyone decides on getting a home equity loan it is a good idea to look at the pros and cons of doing so. Getting a home equity loan is a serious financial decision and as such needs to be thoroughly researched so that you, the borrower, know the ramifications. Probably the first thing that you need to be aware of is that a home equity loan is, in essence, a second mortgage on your home, and as such carries all the terms and conditions of a first mortgage.

On the pro side, there is a definite upside to getting a home equity loan. The obvious thing is that you will get a large infusion of cash that you can use for just about anything you want. Once you have signed the papers you will probably receive your check after the closing of the loan is completed. Once the check is in your hand you can use that extra cash for remodeling your house, buying a new car, paying off credit card debts or even invest it and try to make more money. You will also be able to deduct the first one-hundred-thousand dollars of interest on your income tax returns, which can be a large tax savings for you.


You will also have to weigh the disadvantages of getting a home equity loan as well. You must be certain that you can make those monthly payments, in addition to the payments on your first mortgage. Having two house payments a month can be a strain on many people’s finances, particularly if you or your spouse were to lose your job. You also need to make sure that the market for housing in your area is stable. A sudden housing market drop and even selling your home may not produce enough cash to pay off both of your mortgages.

Many people use a home equity loan to pay off other debts, hoping that consolidating many payments into one will make their financial situation better. While this may look good in the short term you need to weigh the benefits against the long-term interest you would pay on a home equity loan. Sometimes it may make better financial sense to simply pay off your other debts without the added risk of using your home as collateral.

The pros and cons of a home equity loan are many and it is important that you look at both sides of the equation carefully. Don’t be blinded by a large amount of money and what you could do with it. Realize that you are putting your home up as collateral and if for some reason your financial situation takes a turn for the worse your home could be taken away from you. Weigh the pros and cons of a home equity loan carefully before you make your final decision

Find the Difference Between Farm and Agricultural Land Loans

There is a difference between (Farm Loans) and (Agricultural Land Loans). Farm loans would include loans for purchase and refinance of agricultural producing property. These are usually paid over a period of 25 to 30 years. Farm loans could also include operating loans to purchase seed, fertilizer, etc. or anything needed to establish a growing crop. Farm loans would also include loans to purchase machinery needed in the farming operation. Farm loans could also be made to pay living expenses until crop is harvested.

Agricultural Land Loans on the other hand are made exclusively for the purchase of real estate used to produce farm products. They can also be used to refinance long term loans. Agricultural Land Loans must be made on property that produces agricultural product. A 5-acre piece of property with no crops of any kind would not qualify. Most Agricultural Banks are more interested in the shorter-term farm loans than the long term 30-year loans. However American Ag Finance is interested in the long-term loans used to purchase or refinance AGRICULTURAL property. Rates would be competitive with other commercial long-term loans.

Please check the web site “” to see if there is a “Farm Loan Program suited for you.

Important Points to be Consider When planning for Agricultural Land Loans

If you are into agriculture and have farm land and also animals at that point there is a high chance that sooner or later in time you may require an agriculture loan. There are a few unique sorts of agricultural loans accessible including particular loans for farm land, live stock, and some other farming related needs. Yet, the inquiry is how to get agriculture loans?

If you needed agricultural loans then there are some criteria to consider before you applying for the loan. The diverse aspects include:

Business Plan: As a current farmer and new farmer or another agriculturist applying for agricultural loans, the initial step is to set up a detailed and interesting business plan that will throw light on the cash flow forecasts for the coming future. The projection of the cash flow within your business plan will enable your bank to see how much loan amount you to require and the amount you are fit for paying back.

Look at terms: There are a few financial institutions that offer agricultural loans and every organization has its own particular rates and least loan amount. Before you apply for agricultural loan it is almost the best idea to look at the different points of the loan like minimum amount, installment period, lending terms, marginal payment options and considerably more. You can analyze the above information offered by banks, Farm Credit Associations and financial institutions on the internet.

State Agricultural Finance programs: Most US states offer a few state agricultural finance projects while different verities of the states offer at least one loan program. Loan programs and State agricultural finance incorporate each and everything from farmer loan to short-term farm land loans, livestock loans, disaster recovery loans, agricultural loans, seasonal loans, equipment loans and so on. One of the important and famous state agricultural finance programs is the Aggie Bond Beginning Farmer Loan Program. This program is as of now accessible in 17 states and encourages new farmers to get loans at decreased rates for domesticated animals, purchasing land, and so forth. You can get detailed information on agricultural loans and state agricultural finance programs at the National Council of State Agricultural Finance Programs.

Agricultural farm Land Loans

Commercial lenders: You can check the different offerings by commercial lenders like financial institutions and banks also. There are a few business commercial lenders who have some expertise in various sorts of agricultural loans. There are around 2,500 farm banks the whole US that offer agricultural loans at best interest rates. You can likewise look at with banks since they offer more farm loans than any Farm Credit System in the US.

An agricultural loan is exceedingly adaptable and comes up with loan refinancing alternative. As you refinance a loan you take another loan to avail more appropriate terms and conditions than the past loans. This implied in case of tenure period or rate of interest or any other rules and regulations. For instance, if your present agricultural loan has a high rate of interest, you can refinance agricultural loan to avail a low rate of interest. With a refinance loan you can likewise stretch up or shorten the time period of your current agricultural loan. Therefore, it is always advisable to do an intensive research and choose a reasonable bank before picking the best of the agriculture loan.