Whether you’re looking to finance a small hobby farm, or a larger operation, it is crucial to budget for all the expenses. Building a house and farm from scratch is very time consuming and expensive. Knowing what you can afford before you go to the bank is easy with this farm loan calculator. Using this tool is a great starting place for anyone interested in buying a house, building a hobby farm, or setting up the perfect homestead.
How We Used The Free Farm Loan Calculator
I created this spreadsheet while we were shopping for land and comparing prices of building a new house. We were able to get a good estimate of our monthly payments by entering different loan amounts, term length, and interest rates. Our plans changed many times as we watched the loan amount and monthly payment rise, but with this farm loan calculator we were able to find the best home and lot size that fit in our budget.
This farm loan calculator is a very simple tool that can show you tons of important information about different loan options out on the market. Simply enter the purchase price of the lot and home, down payment amount, interest rate, and the term length of the loan and you can see just how much your loan will cost.
Information you’ll input in the calculator:
- Purchase price of the property
- Down payment
- Interest rate
- Length of loan (years)
Variable Comparison
Each sensitivity analysis will show how the monthly payment can change based on two variables. This can be very helpful when determining how much money to put as a down payment. Seeing how just a few basis points of interest can drastically change the monthly payment of the loan as well.
Financing Unknowns
Most people don’t realize how much money they pay the bank to finance real estate. This farm loan calculator will total all the interest paid in each monthly payment showing you the cost of financing. This may help decide is you want to pay cash for certain items.
This farm loan calculator is only an estimation tool and should not be used to find precise loan terms. Banks often pile on fees when loaning money to consumers. This is not financial or legal advice. Banks must disclose all fees and terms of loans so be sure to reach out to your banker to learn more about their financial products.
Knowing Is Half The Battle
Knowing where your money is going and understanding how much farm you can afford is the first step to reaching your goals. This awesome farm loan calculator helped us find the perfect amount of home and land for us. We hope this helps you find yours as well.
You can find our chicken coop build video here.
If you want to learn more about taking care of your flock of chickens we have a great article.