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Boat Loan Rates

Written By: admin - Feb• 12•13

Boat Loan Rates – What You Need To Know

The whole process of getting a boat loan can easily get confusing. There are different stages to undergo and paper works to fill out. Don’t forget the jargons that agents speak out that may add to the confusion. This article will shed some light on the subject of boat loans.

Banks and financial institutions typically treat loans for water vessels under boat loans. This can be sailboats, PWC works or motorboats. If you already found a vessel that you want to take a loan on, then your next step is to tackle the financial issues. Be honest and realistic on how much you can pay monthly for your boat or water vessel. From there, you can adjust how much down payment you may have to pay or stretch the term of the loan so you will end up with the desired monthly payments.

You should also realize that there are additional cost on top of loan monthly payments when it comes to keeping a boat or water vehicle such as a taxes, storage cost, safety equipment, insurance costs, mandatory equipment and maintenance costs to name a few.

Generally, boat loan rates hover around from 5% to 7% depending on your location and the terms of the loan. If you are located in an area where there is an active boat market, then it is easier for you to find different options when it comes to financing your water vessel. Shopping for boat loan rates from different financial institutions is the best way you can be sure that you are getting the best deal possible. However, it does not mean that the lowest interest rate is always the best deal. Some financial institution may offer one of the lowest rates, but they may also require you to jump through a lot of difficult hoops.

When it comes to boat loan programs, there are three major types:

Fixed rate – a loan program that has a fixed interest rate and a fixed monthly payment until the term is over.

Variable rate – a loan program that is able to change its interest rate and monthly payments with regards to the current market standards.

Balloon payments – a kind of loan program that typically has lower monthly payments, but one needs to pay a huge sum at a predefined agreed time.

Before a boat loan is approved and finalized, the financial institution typically sends a Marine finance specialist who will check out the water vessel. This is to ensure that the information related to the water vehicle is accurate. It is best that you talk to the Marine finance specialist on the different options you may have after he or she expects the water vehicle.

Industry standards dictate that boat loans needs to have a down payment. Typically it goes from 10% to 25%. Typically, a 20-year boat loan usually requires about 25% down payment.

It is best that you obtain a pre-approved loan before purchasing a water vessel. This will give you a bargaining chip when it comes to negotiating the price. This also communicates that you are a serious buyer, making the dealers very accommodating.

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