Originally published in Heartbeat Magazine Fall 2025.
Your go-to resource for navigating agriculture’s financial landscape where our knowledgeable FCS Financial staff addresses some common questions from our members.
How can I compare interest rates from different lenders to ensure I’m accounting for all fees and terms, and comparing apples to apples?
Beth Luebbering, Vice President, Ag & Rural Lending, Joplin
Clear communication on an interest rate quote is imperative. Comparing interest rates from different lenders can feel complicated, but with a few key questions, you can ensure you’re comparing ‘apples to apples.’ First, clarify the type of interest rate quoted. Rates can be truly fixed for the life of the loan, adjustable (set for an initial period like 1-3 years before adjusting), or variable (adjusting on a set schedule or tied to a benchmark). At FCS Financial, we offer true fixed-rate options, and unlike some lenders, we don’t call an adjustable rate ‘fixed.’ Another advantage is our interest rate conversion option, which allows you to potentially lower your fixed rate without refinancing if market rates drop.
When it comes to fees, ask for a detailed breakdown and whether they’re due at closing or can be financed into the loan. Remember that ‘closing costs’ aren’t just one fee; they include things like appraisal fees, title insurance and filing fees, in addition to the title company’s closing fee. Understanding these details helps you see the true cost of your loan.
