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.
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?????