| |
Boat Loans
Found the Boat, let's find the Money...
Congratulations! You found the perfect Boat plus you know what you can afford. You’re almost there (‘there’ being at the dock with poles in one hand and a cooler in the other with one foot on the edge of the boat!). Unless you‘ve been saving your pennies for a few years most of us have to get a Boat Loan and can’t pay cash for the new Boat. If you can pay cash for the New Boat, well more power to you! Double Congratulations! You’ll be out there faster then others. Well if you’re like we are, spending those pennies on other things and not saving, it’s time to get a Boat Loan. Whether you’re going it alone or with a Boat Dealer or with a Boat Broker it’s a simply process, especially for those who have at least 10% of the sale price as a cash down payment and your credit history is solid (this is important but not a must, Banks can work with anyone with any credit history). PayCheckToday.com - Click here to get up to $1000 by tomorrow! Nothing to Fax!
Let’s get started on the process of securing a Boat Loan:
Find a Boat Loan Provider: (Bank)
Like our search we did for finding the perfect Boat you can do the same with Boat Loan Providers. It can be done on-line or through Boating magazines or the Yellow Pages. Some of the best Boat Loan Providers are Key Bank, Excel Credit, eBoat Loans, Essex Credit, Bank of America, First Commercial Corporation of America and more. Check your own Bank, they’ll most likely have a Boat Loan Program or can at least refer you to someone. Approved!?
Next the Boat Loan Provider will ask you to thoroughly complete the Loan Application. On the Loan Application there will be a spot to add your sale price, the cash down amount you are providing and/or your Boat trade. Once the Loan Application is completed and sent to the Bank, the approval process should take just a few minutes. Once you’re approved the Bank will then inform you of the interest rate and terms of the loan…
Monthly Payment!?
Now that you have your cash down amount and/or trade ready plus the interest rate you can determine your monthly payment. Remember the more money you put down at time of the sale or the more your trade is worth, the less you’ll pay monthly. Another way of reducing your monthly payment is to increase the length of years on the Loan. Be careful with this, more years to pay off mean more interest paid to the Bank and will take longer to gain equity in the Boat. There are a lot of variables in determining your monthly payment such as the cost of the Boat, the amount of cash down, trade value, credit history, interest rate and terms of the Boat Loan. The most important thing is that you get into a Loan with monthly payments you can afford. Review this on-line Boat Loan calculator to provide you an ‘idea’ of what you payments will be:
The Term (how many years will this be mine!?)
As mentioned above, reducing your monthly payment is easy if we add a few more years to your Boat Loan but be careful with this, you want to build an ASSET not a Liability. An Asset equals Equity - Equity equal Cash - Cash equals a Good Trade value when you’re ready to Upgrade to a bigger Boat (so have more children or make more friends)! The Term (number of years) of a Boat Loan from range from 7 to 20 years; interest rates range from 5.75% to 10%; the more you spend on the sale of the Boat the more you can extend the length of the term and the more you can reduce your interest rate. Here is an example:Amount--Rate--Term--
$100,000 - Above - 5.75% - 20 Year Fixed
$75,000- $99,999 - 6.25% - 15 Year Fixed
$75,000- $99,999 - 6.50% - 20 Year Fixed
$50,000- $74,999 - 6.37% - 15 Years Fixed
$30,000- $49,999 - 6.99% - 15 Years Fixed
$20,000- $29,999 - 7.90% - 12-15 Years
$15,000- $19,999 - 9.99% - 7-10 Years
Read the Fine Print!
Before signing the bottom line and making the commitment be sure to read the fine print. Does the Boat Loan Provider allow you to pay off the Boat earlier then the Term of the Loan without any pre-pay penalties (hey, you could hit the lottery!). What is required for insurance? This could be a larger expense then you think especially if you live in the hurricane belt! Any other hidden fees, commissions that you have to pull out of pocket will further increase your down payment and closing costs. 
|
