“I have had a mortgage, and a farm expense credit line with Farm Credit for 20 years. I refinanced the mortgage two or three times over that period of time and finally paid it off last year. When a mortgage rate is quoted, it seems higher than the cutthroat loans you can get by shopping around with loan brokers who invariably sell the loan, meaning you must work with a bank or credit union you have no prior relationship with. Farm Credit does not sell their loans and they pay an annual co-op rebate which was always so generous that it effectively lowered the lending rate by at least 2% And some years by 3%. So a 6% loan felt like a 3% or 4% loan at the end of each year. The rebate amount is, of course not guaranteed but the company has been doing very well and that means the rebate was also quite good.“
Mortgage Brokers
“I have had a mortgage, and a farm expense credit line with Farm Credit for 20 years. I refinanced the mortgage two or three times over that period of time and finally paid it off last year. When a mortgage rate is quoted, it seems higher than the cutthroat loans you can get by shopping around with loan brokers who invariably sell the loan, meaning you must work with a bank or credit union you have no prior relationship with. Farm Credit does not sell their loans and they pay an annual co-op rebate which was always so generous that it effectively lowered the lending rate by at least 2% And some years by 3%. So a 6% loan felt like a 3% or 4% loan at the end of each year. The rebate amount is, of course not guaranteed but the company has been doing very well and that means the rebate was also quite good.“