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Thread: Interest rates quietly creeping up

  1. #1
    Senior Member IN555 is on a distinguished road
    Join Date
    Jan 2011

    Interest rates quietly creeping up

    A few months back Farm Credit was offering a fixed 15 year farm loan for 4.2%, today it is up to 5.3%. Will this impact land values????? For someone borrowing money I would have to think so. For example if you are buying 10k/ac land and putting 50% down you are still borrowing 5K/ac. That would result in a $55/ac more interest expense the first year. Hard to ignore $55/ac.

  2. #2
    Senior Member jabber1 is on a distinguished road
    Join Date
    Nov 2007
    I was at Bass Pro and was checking out a new boat that they had on the floor. Musta looked too long as a salesman struck up a conversation with me. As part of the conversation he reminded me that they had 2.9% financing available. I asked just how many years they were finanicing these boats for. Here's the punch line- he said 10 to 15 years.

    I wasn't financin' a boat that day sooooooooooo I didn't ask the followup questions- Like-
    - just who in the heck is offering money at 2.9% for sooooooooooo many years and why?????????
    - how in the heck do they avoid all sorts of bad loans when they are financed for soooo long?????

  3. #3
    Senior Member H. Bell is on a distinguished road
    Join Date
    Apr 2011
    There seems to be a bunch of, I'm afraid to call them fools, that are willing to buy US debt that is paying only 2.5% today. Must be some of them.

  4. #4
    Senior Member Tom In Ont is on a distinguished road
    Join Date
    Oct 2007
    my guess is that its factored into that over priced bloat boat and the company is financially strong.

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