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Terms and Fees: Home Equity Lines of Credit are subject to credit qualification and collateral valuation. Fees, conditions, and restrictions apply. Product details can be found in our Important Terms Brochure ask for a copy. Rate and offer subject to change without notice. Evidence of adequate property insurance required. Fees: an annual fee up to $75 applies subject to state law limitations a fee of $100 may apply each time a Fixed Rate Loan Option is elected or reversed. Ask a Bank of the West representative for details.
2Major US bank defined as US banks with excess of $90B in assets. Read more about our restrictive fossil fuel policies here.
3Combine a Bank of the West first mortgage with a loan-to-value up to 80% and a HELOC in second position up to 9.90% LTV for a maximum combined LTV of 89.9%. Ask a mortgage banker for more information.
4Combined total discounts may not exceed 1.25% for the draw period or lower the rate less than the floor of 3.00%.
Can I Lease A Boat
You can lease a boat, but this can be cost-prohibitive depending on what type of boat you rent and for how long. In some cases, a long-term lease on a boat could end up costing you more than buying a boat. If youre thinking about leasing a boat, consider an alternative like chartering or boat sharing.
What Is The Average Interest Rate On A Boat Loan
Boat loan interest rates vary by lender. An unsecured boat loan will have an annual percentage rate ranging from 6% to 36%. See the table below for average unsecured interest rates based on your credit bracket.
How’s your credit?
Secured loans may have lower APRs, with many lenders offering single-digit rates. If you’re not sure what credit bracket you fall into, check your credit score for free on NerdWallet.
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Why Getting A Boat Loan May Be Easier Than You Think
The world of financing can oftentimes appear to be much more intimidating than it really is. Many people have dreams of getting their next toy but have no idea how to go about it. What happens when I want my dream boat, is it hard to get a boat loan?
Not at all! Getting your very own boat loan has never been easier, consumers have more than enough options when it comes to securing financing on their own terms. Although its safe to say that it may be slightly more difficult than finding an auto loan.
Boat loans work much like auto loans in that a borrower can have a bank pay for their boat and make monthly payments back to that bank over a fixed period of time. There are fewer banks willing to give out boat loans than auto loans, but with the help of this article, you will be directed to exactly where to go.
Thanks to the popularity of the internet, applying for a loan has never been more accessible. Buyers can shop between different lenders online and see which loan will work best for their situation. So dont be afraid to finance, apply for your very own boat loan today!
Have All Your Paperwork Ready
Getting a boat loan requires a fair amount of paperwork, especially when the boat is more expensive than a new car. Things you might need for the loan application includes information about your assets and debt, two years of verifiable income history and your Social Security Number and/or Individual Taxpayer Identification Number.
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Let Us Help You Get Our Best Rate
Are you shopping rates with another lender?
We’ll do our best to meet or beat your current mortgage offer from another lender.footnote2 Even if you’ve already applied elsewhere, we may be able to reimburse you up to $750 for closing costs when your new Bank of the West mortgage closes.
Turn your deposits with us into interest rate discounts
Our relationship pricing discounts for current Bank of the West and BWIS customers start at 0.125% if you have $100,000 or more in eligible deposits and rising to 0.75% with $3 million or more in deposits.footnote3
Get a 0.125% discount for setting up autopayfootnote4
Simply have your monthly mortgage payment automatically deducted from a Bank of the West savings or checking account.
Calculate Payments With Our Boat Loans Calculator
Use our boat payment calculator to determine a monthly payment that you can afford when looking to finance a new or used boat.
Simply enter your desired amount, estimated interest rate, and the loan term over which you intend to pay back the loan. Once you’ve input the information, the calculator will generate your estimated monthly payment on your boat loan. Take this number and plug it into your current monthly budget.
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How Boat Loans Work
Most of us cant afford to dip into our savings to buy a boat, especially more expensive options like houseboats, pontoon boats and yachts. Thats where boat loan lenders come in. But how does a boat loan work? A boat loan is quite similar to a car loan, so if youve already financed an automobile, the process should feel familiar.
And just like with cars, you can take out loans for both new and used boats.
Is Financing A Boat A Bad Idea
As a general rule of thumb, you should ensure that any purchase you finance will be paid down faster than it depreciates. If the purchase’s value decreases at a faster rate than your loan balance, you run the risk of going “upside down” on the loan, or dealing with negative equity.
While this is most often talked about in terms of new cars, it’s also a concern with watercraft, especially since boats are quickly depreciating assets.
Negative equity can be a serious concern with a high-value investment such as a boat. If the boat were to be stolen, totaled, etc., you would be on the hook for the difference between the remaining loan balance and the insurance company’s valuation/payout. Negative equity can also come back to bite you if you ever want to trade in the boat or sell it, as you’ll wind up owing your lender out-of-pocket in order to finalize the transaction.
Lastly, it’s important to recognize that financing a purchase will cost you more than the sticker price, no matter how competitive the interest rate you obtain. Between loan processing fees and finance charges, the added expense can be significant.
While financing a boat is not a bad idea in and of itself, it’s important to strike a balance between your purchase price, down payment amount, and loan repayment terms. This will help maintain a healthy loan-to-value ratio and ensure that you don’t pay significantly more for your purchase over time than if you’d paid in cash.
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Boat Loans Only Available In Select States
Whether you have plans to purchase a new or used boat or you want to refinance the loan on a boat you currently own, keep in mind that Bank of America does not offer boat loans nationwide. While it is a national financial institution that offers a full range of products to meet varied needs for personal and business use alike, boat loans are a unique product. Before you proceed with a loan application, ensure that Bank of America offers boat financing in your area.
Youre Our First Priorityevery Time
We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.
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Down Payment May Be Required
Boat loan lenders often want to see a down payment, generally between 10% and 20%, depending on factors including the lender and the cost of the boat. Some lenders offer 0%-down loans but keep in mind that making a down payment can hedge against the boats depreciation, or loss of value over time, and help prevent a situation where you owe more on your boat loan than the boat is worth. A down payment may also lower your monthly payment and reduce the total amount of interest you pay on the boat loan.
What Is The Best Way To Finance A Boat
One of the best ways to finance a boat is a secured boat loan. Similar to an auto loan, a boat loan is a secured loan where the boat acts as collateral. If you default on the loan, the lender can repossess the boat. In exchange for the collateral, the lender may be willing to offer lower interest rates and higher loan amounts. If possible, you should use a secured boat loan. Most banks and credit unions offer them. However, your purchase will need to align with the approval terms and you may have to come up with a down payment.
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The Bottom Line On Boat Loan Terms
If youre financing the purchase of a boat, keep in mind that your options vary along with your financial picture. As with any other loan, those who come bearing good credit and a decent chunk of disposable income will find more favorable boat loan terms than those with less-than-perfect credit and a tighter budget. In general, financing a luxury item like a boat may be subject to higher underwriting standards than a car or home.
A few things to be aware of:
- Simply getting approved for a loan and being able to make a down payment does not necessarily mean that you will be able to keep up with the obligation long term. Make sure you consult your budget and be realistic.
- When shopping for a loan, be sure to check your credit, pay down other debt and get prequalified so that you know the exact amount for which youll get approved.
- Dont get in over your head. Its tempting to buy a boat, but the better option is to make sure that you can afford the payments before giving into that temptation.
How Easy It Is To Get A Boat Loan
Getting a boat loan has truly never been easier. Anybody looking to get on the water can go online and compare a number of options to see which loans fit their unique needs. All potential boaters and sailers have to do is come up with a budget and they should be ready to shop around! Different banks have different requirements for their loans which plays into the hand of the consumer when there are 40 financial institutions competing for your signature, youre the winner!
Many people see a stigma surrounding boat loans, is it hard to get one? The answer is no. If you know where to go, its not any harder than getting a car loan or a personal loan. Loan terms and amounts, annual percentage rates, and credit score requirements if youve financed a car before, the process is very similar.
Dont keep looking at your dream from the dock, go online or head to your local marina today and see how easy it is to get your very own boat loan!
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Annual Percentage Rate For Boat Loans
Like with auto loans, you will want to shop around for the lowest boat loan interest rates. The best boat loans on our list start at APRs hovering around 4%, but those are typically offered for the strongest credit scores and shorter loan repayment terms. The longer you stretch your loan out, the more you can expect to pay in interest.For example, Bank of the West boat loans start at 4.24% for $100,000+ over four years, but by seven years, the APR jumps to 4.99%. At 20 years, that same loan nets a 5.49% APR.
Get Answers To Your Questions About The Home Loan Refinance Process
- Initial interest rate may be lower than a comparable fixed-rate loan
- An ARM has an interest rate that is fixed for a set period, usually 5, 7 or 10 years
- After the fixed-rate period, the interest rate adjusts based on an index and monthly payments fluctuate with the market
- May be best if you plan to pay more on your loan early on or live in your home for a short time
Please refer to your loan denial notice for the specific reason your application was denied. If you were denied due to credit score, this article has helpful tips on how to improve your score: Good Credit Planning. Your Home Loan Specialist will assist with information that may be helpful when youre ready to reapply.
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How Did We Choose The Best Boat Loans
Personal Finance Insider’s goal is to help smart people make the best decisions with their money. We combed through the fine print of many boat loans and lenders so that you don’t have to. We considered the factors that are the most important to boaters, including:
- The type of boats financed: We searched for lenders that offered loans for the most shapes and sizes of boats, from houseboats to sport boats.
- Interest rates: We compared the starting points of interest rates from many banks, and compared ranges where available.
- Few or no fees: We looked for lenders that offered boat loans with the fewest amount of fees on each loan.
- Loan amounts: We chose lenders with the widest variety of loan amounts available to help everyone find a loan for their boat-buying budget.
- Widespread availability: Lenders we considered have loans available in almost all 50 states, if not all.
Alternatives To Boat Loans
If you would rather not go the traditional route or your credit is challenged, there are other methods of financing your boat purchase. These include:
Home equity loans or lines of credit. Since these loans are secured by an asset your home you may be able to find competitive rates. At the time of publication, APRs for home equity loans and HELOCs of $25,000 could be found for 6%, slightly higher than the 5.59% APR for the same amount from Essex Credit. However, an advantage of a home equity loan is that rates are typically fixed. Be aware that if youre tapping the equity in your home for a pleasure purchase, be certain that youll be able to repay the debt, or you risk losing your house. Furthermore, you may find yourself paying pricey closing costs and other fees, though some lenders will waive these fees.
A typical home equity loan has terms from five to 15 years, which may be longer than you need for a relatively inexpensive boat. HELOC terms vary but may last up to 20 years. An advantage of a HELOC is that you only pay interest on what you borrow but interest rates may be variable. You can read more about home equity loans versus HELOCs. Remember that good credit is vital here you typically need a FICO score of at least 680 to qualify for either a home equity loan or a HELOC.
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How Else Can I Pay For A Boat
If you cant find a boat loan near you or would rather not use it as collateral, you might want to consider these alternatives:
- Leisure vehicle loans. Some lenders offer leisure vehicle loans that cover a wide range of vehicles from jet skis to RVs and include boats.
- Save up. Not in a rush? Saving up is the cheapest way to buy a boat, since you wont have to pay any interest or fees.
- Rent a boat. Marketplaces like GetMyBoat act like Airbnb for watercrafts, letting you reserve one when you need it.
- Find a boat club. Boat clubs give you access to fleets of boats in exchange for a monthly or annual payment and you wont have to foot the bill for insurance and maintenance.
Where To Begin When Getting A Boat Loan
Trying to get financing for a boat can be confusing, but it doesnt have to be. Acquiring a boat loan is a lot like getting a personal loan or financing a car, and anyone can do it in just a few short steps:
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