Farm financing glossary

In consumer-mortgage guidance, amortization describes how payments are applied to principal and interest over time. As the balance falls, the portion going to principal can grow. Some loans do not fully pay off the balance through their scheduled payments, so the actual loan agreement matters.

Sources: CFPB Mortgage Answers — Key TermsCFPB — How does paying down a mortgage work? (consumer mortgage context)

Cash flow can describe money moving into and out of an operation during a period. In its farm-loan handbook, FSA defines a cash-flow budget as a projection of anticipated inflows and outflows over a budget period; it can include farm and nonfarm income, debt service, and other expenses. That is the FSA’s program-specific budget context, not one universal cash-flow measure.

Source: USDA FSA 6-FLP Handbook — Cash Flow Budget

Property pledged to secure a loan. FSA guidance says guaranteed operating-loan collateral may include crops, livestock, equipment and, when necessary, real estate; farm-ownership collateral may be real estate or a combination of real estate and chattel. The property and adequacy standards are specific to the program.

Sources: Your FSA Farm Loan CompassFSA Guaranteed Farm LoansFSA Guaranteed Loan Program fact sheet

Changing how a debt is repaid through loan-servicing options. FSA lists options such as rescheduling, reamortization, consolidation, deferral, or reducing the amount owed. Those are FSA servicing options; availability depends on the applicable program and borrower circumstances.

Sources: FSA Loan ServicingFSA Annual Program and Policy Reminders

In the CFPB’s home-equity explanation, equity is the property’s current worth minus the amount of any existing mortgage on it. This is a consumer home-loan framing; how value is determined and which debts count can differ in other contexts.

Source: CFPB — What is a home equity loan?

Interest is the cost of borrowing money: the charge for using the lender’s money. The amount depends on the loan’s rate, balance, and terms. This consumer-mortgage explanation does not state a C 45 Group rate or policy.

Source: CFPB — How does paying down a mortgage work? (consumer mortgage context)

In CFPB mortgage guidance, an interest rate is the annual cost of borrowing, expressed as a percentage; it does not include fees or other charges. APR is broader: it reflects the interest rate plus points, mortgage broker fees, and other charges. These are distinct disclosures in the mortgage context.

Source: CFPB — Mortgage interest rate and APR

The cited Bankruptcy Code definition describes a lien as a charge against or interest in property to secure payment of a debt or performance of an obligation. It is a legal definition in that Code’s context; lien rights and priority depend on applicable law and records.

Source: 11 U.S.C. § 101 — lien definition (Cornell Legal Information Institute)

A borrowing arrangement that lets a borrower draw funds as needed up to an approved limit. FSA says some farm operating loans may be structured as lines of credit, depending on purpose and intended term.

Source: FSA Guaranteed Farm Loans

The period allowed for repayment. FSA says repayment terms for farm operating loans vary by loan purpose.

Source: FSA Farm Operating Loans

For a mortgage, CFPB describes loan-to-value as a comparison of the amount financed with the property’s appraised value, usually expressed as a percentage. Mortgage lenders may use LTV in lending decisions and costs; this explanation sets no threshold for farm property or for any particular lender.

Source: CFPB — What is a loan-to-value ratio and how does it relate to my costs?

In CFPB consumer-mortgage guidance, principal is the amount borrowed; the principal balance is the part of that amount still owed. Payments applied to principal reduce the balance. This is a general explanation of the mortgage term, not a C 45 Group loan balance or policy.

Source: CFPB — How does paying down a mortgage work? (consumer mortgage context)

Replacing existing debt with new credit. FSA describes refinancing as a use for some farm loans, subject to program conditions. Those conditions apply to the FSA programs described, not to all lenders.

Sources: FSA Farm Operating LoansFSA Guaranteed Farm Loans

A repayment schedule lists the payments required by a particular loan, including the amount due and when it is due. The amounts and timing depend on that loan’s agreement. For certain consumer mortgages, CFPB rules require disclosures of periodic payment amounts and frequency; those rules apply only to covered transactions and are not C 45 Group policies.

Source: CFPB Regulation Z § 1026.37 — payment disclosures for certain consumer mortgages