Rate Options

Colonial Farm Credit Rate Options

By wisely choosing the type of interest plan and repayment schedule for your loan, you can maximize the use of the money while minimizing your interest costs. Colonial Farm Credit has several rate plans and loan term options available to suit your particular situation.

With any of our plans, you have the ability to switch interest rate products as your interest rate needs change. Our experts are here to help sort out rates and terms that fit your lifestyle. Contact us today and let us work for you.

Fixed Rate Plans

The interest rate on these loans will be fixed for the entire term of the note. This term can be as short as five days and as long as 30 years.

Variable Rate Plans

Rates on variable loans are tied to changes in the financial market. Your interest rate is calculated by adding a specific number of percentage points to an index.

There are two indexes available; Prime Rate and LIBOR. Prime Rate is the rate most often published in the news and is the base rate quoted by commercial banks as the rate charged their most creditworthy customers. LIBOR is the London Inter-Bank Offered Rate and is a widely monitored international cost-of-funds measures. 

Agricultural variable rate loans generally will not have an annual or lifetime cap on interest rate changes. Consumer-type loans secured by a dwelling are available with interest rate caps. Variable loans are not subject to prepayment penalties.

Adjustable Rates

Adjustable Rate Mortgages (ARMs) allow you to gain some interest rate protection by fixing the rate for a specified term. ARMs are offered with one-year, three-year, and five-year repricing options. ARMs may contain caps or ceilings associated with interest rate changes designed to give a borrower protection against increases in interest rates. There are no prepayment penalties on an ARM loan.


Leasing is a useful financing alternative that can maximize your cash flow and possibly reduce your taxes in certain situations. Leases are especially useful for equipment. Ask your loan officer to run a lease-loan comparison to see if leasing may be an option for you.

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