(Hint: you could save thousands of dollars)

Are you locked into a long-term Ag mortgage and wondering whether that’s the right decision for you? We may be able to help.

Since January, Ag lending rates have dropped, and farmers are taking advantage of the benefits and savings of switching their mortgage to Fusion Credit Union.

We sat down with Stephanie Brown, one of Fusion’s Ag/Commercial Lenders located in the Birtle/Miniota area, to discuss why farmers should consider moving their mortgages.

You can always refinance for a better rate at Fusion

With some Ag mortgages, you’re locked in at the interest rate you signed up for until you’ve paid off your debt in full. You can’t reapply to get a lower rate, and considering how interest rates have dropped, this can leave you searching for other options.

Fusion members can refinance to take advantage of better interest rates by blending existing rates and new rates, or by canceling your current rate and switching to a better one.  A Fusion Ag Lender can discuss options, taking all information into consideration, and make a recommendation based on what makes the most financial sense for your operations.

You might be able to take advantage of no pre-payment penalties

While a loan with another ag financing company may not always be renegotiated, many do offer the option of paying out the mortgage early without penalties attached.

If your current mortgage at one of the competitor’s doesn’t have a pre-payment penalty, you can take advantage of this by applying for a mortgage with Fusion at a lower interest rate and then paying out that existing high interest mortgage. This translates to immediate savings on interest payments, and you can invest those funds back into your farming operation.

Recently, Stephanie moved a farmer’s mortgage from a 25-year fixed rate at another financial institution to a 10-year fixed rate with Fusion. Stephanie compared what the farmer would pay in interest on their 25-year mortgage, with the cost of refinancing to Fusion’s 10-year mortgage.

“It was almost $100,000 worth of interest we were able to save,” said Stephanie.  “So, he brought his business over to Fusion because it just made sense.”

Fusion mortgages can be flexible

“A lot can change in 10 years,” says Stephanie, “so Fusion offers members the ability to change their mortgages when they need to.”

Members have the options to add money to their mortgage, blend interest rates, or buy down their rate. And members only pay a penalty if they buy down their rate or break their contract, but sometimes it’s worth it.

For example, if a member’s mortgage rate is 5% and they want the new five-year rate of 2.99%, they can choose to break their contract and pay six months of interest as their pre-payment penalty. Every situation is different, but members could save money by taking this route.

We’ll do the math before you switch

To help people consider moving their mortgages, Fusion will calculate the difference. We take into account your current rate, the term, any charges or penalties and calculate whether it’s in your best interest to move your business to Fusion, before we sign the paperwork.

“We gather all the information of their current mortgage, and then calculate numbers to ensure it all makes sense,” says Stephanie. “There are so many reasons to move their business to Fusion, but most importantly, we want to help them make the right financial decisions for their operations.”

Find out if it’s in your best interest to switch to Fusion.

“I always say that more knowledge is better. It doesn’t cost you anything for us to have a look.”

Click here to find your nearest branch, call us toll free at 1-877-226-7957, or email info@fusioncu.com and get a free assessment today.