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  • Writer's pictureKevin Pifer

Pre-Payment Clause


The past few days we have discussed the fundamentals of financing farmland. Lenders may charge a loan documentation fee or attach a pre-payment clause in the loan document. Be sure to fully understand the fees and pre-payment penalty so you understand any upfront costs and back end fees if you decide to pay the loan off early. Most lenders will waive the pre-payment penalty if you re-finance with the same lender. Also, if you are paying the loan off in full rather than switching lenders where there is a chance there will likely be no pre-payment penalty.



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