Agricultural Mortgage Lenders
By Kaushik Mukherjee

Agricultural mortgage lenders are different at various aspects from regular mortgage lenders. After industrialization, when the urban civilization expanded fast and vast, the real estate loans became much more popular than the traditional form of rural loans. The down fall of the agricultural industry and the sharp rise of real estate development worked as the catalyst in more or less destroying the rural mortgage loan industry.

In this background government has taken serious protective measures keeping in mind the necessity of regular investment in the rural sector. For these reasons, government has structured few special plans and commissions that will implement beneficial rules and measures in promoting rural mortgage loans. The rural mortgage lenders for this reason offer a rare flexibility unheard of for other types of loans to attract more investors.

An agricultural mortgage lender is specialized in agricultural mortgage loans that cover a vast range of options all at once. A mortgage loan is one where the loan amount is granted by collateralizing a property, which is supposed to be taken as the security of the loan. That means if the borrower defaults in loan repayment, then the lender has the right to seize the secured property. This signifies the inherent risk that every type of mortgaged loans carries with itself. However the amount of money that a mortgaged loan can provide is almost impossible to get through with any other type of loans.

The rural mortgage lender offers various types of interest rates that define the flexibility of such loans. Basically there are two types of loans according to the mortgage rate -

* Fixed mortgage rate loans:
Here the interest rate remains same throughout the tenure period of the loan. That means the borrower has to pay same amount of monthly loan payment. This certainly carries lesser risks, though most of the times come with slightly higher interest rates.

* Variable mortgage rate loans: Here the interest rate fluctuates according to the changing market condition and mortgage rates index. That means the borrower has to be aware that he may have to pay a different amount of monthly loan payment further down the line with varying rate of interest subject to market rates. This can quite unpredictable and thus carries a certain amount of risk within.

However to get the best profit out of these two one can always go for a refinancing mortgage option. This helps a lot in fighting sudden critical financial crisis or to pay back the loan without receiving much harm. Through a refinance mortgage one can also lower the interest rate, change the loan type, adjust the tenure period and even sometimes manage an amount of ready to use cash.

There are basically three types of agricultural mortgage lenders -

* Mortgage bank

* Mortgage companies

* Mortgage brokers

These three different types of mortgage lenders come with three types of terms and conditions. Generally a mortgage bank is under governmental control, while the mortgage companies are private in most of the cases. However the mortgage brokers can provide with much more analytic and informative picture of the industry and can act as go between the other two kinds. The tenure period in most of the cases is from 1 year to 60 years. However one should be very carefully when choosing the best and most helpful agricultural mortgage lenders.