Boat Loans & Financing, Buying, Borrowing & Loan Information
Boat loans and boaters financing, now that you have picked out your dreamboat where do you
go for the best finance rates, the best long term deal because a boat can be financed for many years? A new boat can be financed for 120 months or more which means after 10 years of wear and tear on your boat you could still be making payments. 15 year or 20 year loans are available for more expensive purchases. When you finance a boat for this long it is almost like a home mortgage.
A second mortgage, home equity loan, or even a complete home mortgage re-finance is sometimes the way to go when the purchase involves a much more expensive boat, like a large yacht or commercial vessel. This can usually result in the best terms of all with a lower payment and if you wish to use the equity in your home to make your boat purchase then this would certainly be an option to consider.
Used Boat Loans
- The options for a used boat can differ slightly in term length of loan and even interest rate. Your options for the length of the loan will be shorter. Used boats usually won't get as many months finance terms as new boats.
- For a used vessel you will be required to get what is called a 'Marine Survey'. Price depends on length and type of vessel but you can expect to pay survey fees of anywhere from $12 on the low end to $20 per foot on the high end. You will want to use a reputable surveyor so check their expertise and references before hiring your surveyor.
Loan & Financing Questions to Ask
A few questions to ask or think about when getting financed include:
How much of a down payment do I need?
How much can I finance?
How many years can I finance for?
What is the least amount the loan company will finance?
What is the current interest rate?
Do they offer a fixed rate or adjustable?
Do you want a fixed rate or adjustable?
Type of boat - Does it matter if it is a powerboat, sailboat, or houseboat?
How long does the process take?
Can I pay-off the loan early without penalty?
Boat Loan Tips
First thing a borrower must do is to check what the current loan rates are and
compare them at three or four different financing companies.
Where do I get my financing?
Options would include the dealership where you are making the purchase. The internet, your own bank, a home equity line, or you could go directly to the finance companies that specialize in loans of this nature.
- What about getting pre-approved?
When preparing to buy a house you get pre-approved so why not for a boat? For used boats you should try to get pre-approved because you will know exactly what your limits are and you will put yourself in a better position for negotiating with the used boat seller. Again you know exactly what you can offer the seller.
- Loan Advice and Refinancing Tips for Used Boats - Article
Boat Loans - Check Your PaymentsUse the form below to see what your loan payment will be. This form is for straight simple interest. To figure your payment follow the simple instructions below.
- Type in the amount you are going to finance in the "Amount to Borrow" field.
** NOTE - Do Not use commas in your number.
- Type in the current interest rate.
- Type in the terms. How many months will you be financing for?
- Click the 'What's My Payment?' button and see your payment.
Loans, Financing, Mortgage Resources
- Intercoastal Financial Group - Be sure to trust your boat loans with an industry leader, Intercoastal Financial Group, Inc. is one of only a few marine lenders in the United States that fund all of their own boat loans.
- SeaDream Inc - SeaDream Inc. is a full service boat loan and boat insurance brokerage able to offer you the lowest rates on new or used boat loans, boat refinancing, and boat insurance. Apply online or talk directly to a boat financing professional.
Other Boating Tips & Benefits
Did you know there is a tax benefit to purchasing a boat with a galley and a head? There is, and you can claim loan interest on your IRS tax returns when you file Federal income taxes each year. When you have a loan on a boat with these qualifications - head and galley - the IRS classifies your boat as a second home and just like a home or second home you may write off your interest on your home mortgage.
Don't forget to save your fuel receipts every time you fill up on the water. Another perk from the US government: a credit or refund may be allowed for the excise tax on fuel used in a boat, since a portion of that tax is used by the government to repair and maintain roads. So as a boater you may be able to get that portion back, since you are not doing any damage to the road while you are boating.