One easy way of looking for land mortgage rates would be to visit the website of the lender to view prevailing land mortgage rates. Because the collateral or the land that the borrowers are seeking to buy are usually undeveloped and not used for housing at the outset, interest rates and down payments for land loans are higher compared to mortgage loans, according to the Bankrate.com website.Continue Reading
Lenders view land loans as being riskier investments, especially if the land has not yet been improved and or it is not used for housing. This means that it will be easier for the borrower to just leave the property, leaving the lender with the problem of liquidating the property to salvage their investment.
However, the type of land loan that can be obtained by borrowers from lenders still depends on the property and the borrower's plan for it. Getting the land surveyed for property lines, easements and access will also help the chances of the borrower of obtaining a loan for it, states Bankrate.com.
Lenders, especially those that specializes in farm and land loans, usually have their prevailing mortgage rates displayed on their websites. One example is the GreenStone Farm Credit Services website that displays mortgage rates for recreational and larger parcel loans, construction loans and rural residence homes. The Farmlandinvestor.com website, on the other hand, offers information and news about mortgage rates, which may also be helpful for borrowers.Learn more about Credit & Lending