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McHenry Savings Bank

Agribusiness Borrowing

You need a banker who knows your business.

McHenry Savings Bank has decades of agribusiness experience. We can service all of your banking, borrowing and wealth management needs. Our team can help you take advantage of exceptional interest rates, favorable loan structuring, and customized borrowing plans with your objectives in mind. From business banking accounts to agribusiness loans, we treat the interests of your business as if it were our own. Your trust is our priority, and your success is our mission.


3 Benefits to Refinancing Now

1. Rate Reduction:
While this is an obvious benefit, it seems few people are aware of the magnitude of change available. Today 7 year fixed rates are available to strong borrowers at rates around 3.65%1,and 15 year rates are available around 4.00%1, which are approximately 1% below equivalent rates as recently as January of this year, and well below rates of a year ago or more.

2. Repayment extension:
In addition to the overall decline in rates, longer term rates have actually fallen more than short term rates, providing an opportunity to lengthen the repayment period (maturity and/or the period the payments are calculated over). The cash flow effect of the rate decline can be “super-charged” by lengthening the time over which the principal payments are spread and reducing each payment even further. The amount of this benefit in cash flow will be determined by the terms of the debt being refinanced, as today’s farm mortgages can have amortization terms as long as thirty years.

3. Target important objectives:
While many borrowers will want to use this favorable refinancing environment to maximize the cash flow benefit of reduced mortgage expenditures, some may instead want to use the range of payment structures available to target specific planned life events. For example, if current earnings are good, a borrower who wanted to retire debt free at a specific date may want to choose a payment structure with an accelerated payoff calendar targeted to that date. Alternatively, if the borrower planned on selling the land within a few years, they could choose a longer term amortization with a shorter term maturity in order to minimize current cash flow costs prior to the planned sale.

1Annual Percentage Rate (APR) is effective as of 7/9/2021 and may vary based upon borrower’s creditworthiness. All rates shown are based on a 25 year amortization and semi annual payment.

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Why MSB?

A good lender should be able to listen intently to your objectives and help you select the loan terms that best permit you to take advantage of today’s exceptional rates and structural alternatives, including the full range of long-term fixed rates currently available. While many banks may not be able to offer the full range of long-term fixed rates currently available, McHenry Savings Bank, through its relationships with FarmerMac and other leading farm lenders, can provide a full menu of attractive financing alternatives.

Meet Tim

As a farmer myself, I know our industry. I have over 35 years’ experience in Agricultural lending with an emphasis on Real Estate. I own farm land and operate a crop and beef enterprise in northwest Illinois. Working at MSB, a privately owned bank, I am helping farmers, agribusiness owners, and commercial clients meet the demands of their ever-evolving businesses.

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Tim Kempel

SVP – Agribusiness Banking
NMLS# 586675