It is sometimes hard to keep your farm running profitably. It may be costing you too much to keep the farm in top shape while at the same time try to make a profit. If the farm has been in your family for generations, you may not be willing to sell it even if you stand to make a profit. Many farmers today are looking to find lenders for refinance farm mortgages to help them deal with this type of situation.
Specific requirements necessary in order to qualify
There are some specific requirements necessary in order to qualify for a refinance farm mortgage. They are basically the same as with any refinance mortgage, primarly that the borrower is credit and income eligible and must be a property owner.
A refinance farm mortgage is available only to borrowers who own their own homes (farms). The equity that has been built up in the home (farm) is used as collateral and the amount of the loan is a percentage of the home’s (farm’s) value. This loan can be set up on 30 year fixed, 20 year fixed or 15 year fixed refinance mortgage loans.
Obtaining a refinance farm mortgage
A farmer has several options to choose from when obtaining a refinance farm mortgage. Cash out refinance mortgage, property improvement refinance mortgage or rate term refinance mortgage options can be available.