For The Most Part The Nontraditional Loan Options We Discussed Will Have Similar Financing Lengths
How long can you finance a boat for. You can apply online and receive funds as soon as 24 hours on approved loans. We have loans that range from 36 months to 20 years. Amount To Be Financed.
Know the payoff terms. Unsecured boat loans which are personal loans tend to come with shorter terms typically no more than five to seven years. You can use our Boat Loan Calculator to figure out exactly how the monthly payments would differ between a 10-year term and a 20-year boat loan.
Most people will finance a boat for about 10 years On Average. Typically lenders will reserve the longer terms of 180 or 240 months for boat loans of 25000 or more. Boat financing terms generally range between 10 to 15 years.
If the boat is expensive you may be able to obtain a 20-year term for a secured loan with your boat as collateral. Terms as long as. Something to keep in mind though is that the longer the term of the loan the longer it will take for you to gain equity in your purchase.
Obviously that can bring down your monthly payments quite a bit. A boat loan can be as long as 240 months 20 years and as short as 24 months two years. No matter what state you are from we can help you finance.
Options include choosing a shorter financing term with a higher payment while others may choose a longer term with lower payments. Instead our boat loans are based on whether or not you can comfortably afford the monthly repayments. The loan term available will largely depend on the boat you select.
Best Financing Options For Boat Docks
If you need a loan to finance a boat dock or slip you should look into using a personal loan. Personal loans do not require collateral, are easy to qualify for, and can allow you to borrow generous amounts. Once you are approved and receive funds you can use the money however you would like. Whether you have good credit or bad credit you can qualify for a personal loan. So where can you get a personal loan? Acorn Finance is an online platform that partners with hundreds of reliable lenders that offer personal loans. Simply submit one online application that does not affect your credit and receive multiple personalized loan offers within seconds. Lets take a look at some of the pros a personal loan can offer
How A Boat Loan Works
Generally speaking, lenders will want a down payment between 10% and 20% of the boat purchase. However, for loans under $50,000, zero down loans are possible depending on the borrowers credit score and income. For larger loans on yacht purchases where more than $1 million is being borrowed, a 20% down payment is typically the minimum and some lenders may require even more.
If youre trading in a boat as part of the purchase, your equity in the trade-in boat can be used toward the down payment amount . Also, by putting more money down, you can sometimes improve the interest rate on the loan.
The term of a secured boat loan is typically somewhere between 10 and 20 years. Smaller loan amounts of, say, under $25,000 will usually be on the shorter end of the term range, and larger boat loans will often be around the 20 year term length. Of course, the longer the term of the loan, the more total interest the borrower will pay over time. However, since most loans are simple interest loans, the borrower only pays interest on the outstanding balance of the loan. The borrower can make additional payments to reduce the overall expense, but the payment amount will remain fixed for the duration of the loan.
As previously mentioned, the interest rate will mostly be dictated by your credit score, the size of the down payment, and the term and size of the loan.
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Ready To Secure Boat Financing
The bottom line? If youre buying a new boatwhich wed certainly encourage as opposed to buying used, since new boat-buyers report a much higher level of satisfactionand your credit score and debt-to-income ratio are up to snuff, you should have no problem financing a boat that meets a lenders minimum loan amounts for up to 20 years.
Use our Boat Buyers Guide to help work through all the other factors that should be taken into account when making a purchase of this nature, and youll have years of fun on the water to look forward to.
Boat Loans: Best Ways To Finance A Boat
When looking to finance a boat purchase, it’s important to understand the ins and outs of boat loans and using a boat loan calculatorand how to get a loan through financial institutions likes Wells Fargo, USAA, and Chase.
Cheap fuel, low interest rates, tons of new boat models and lots of lenders add up to this being just about the perfect time to buy a boat. These days, borrowing is increasingly necessary too as boats have grown bigger and more expensive. The average new boat loan today is over $200,000, so theres been an uptick in larger loans. That said, smaller loans are also getting attention since national and local banks, financial services firms and credit unions have returned to marine lending after the recession. It may be time to dive in and get that dream boat.
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The Typical Age Of Boat For Loans
Many lenders will not lend money for boats older than 15 years, according to the Mortgage Report. Some will lend for boats manufactured as long ago as the 1980s. Just as with cars, a buyer is more likely to find financing for an older high-quality boat than a mid-range or lower-end older boat, according to AllAtSea.com.
Regardless, interest rates will be higher for older boats. A premium is charged for financing boats older than 20 years. Lenders typically also will want the boat to be appraised and some may even require that list of comparable boats be presented to help them assess value, according to Boats.com. They also will require that the title be researched to be sure no other liens exist on the boat.
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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What Is A Good Interest Rate On A Used Boat Loan
While used boat loans can occasionally have rates higher than those offered for new boats, this isnt always the case. In fact, many lenders offer the same competitive rates whether youre buying used, new, or even refinancing. Because of this, applicants can expect to find used boat loans with rates in the 4% to 5% APR range.
For instance, Bank of the West our overall top pickoffers interest rates starting at 3.59% APR for watercraft over $50,000, whether the boat is new or used.
Where To Find A Boat Loan
How long you can finance a boat may also depend on where you find financing. Here are some of the main venues where youll be able to find boat loans:
Dealer financing. About 80% of new boat financing deals take place through dealerships, according to Jim Coburn, a principal at Coburn Consulting Company and member of the Michigan Boating Industries Association. Banks have relationships with dealerships and dealerships have the customers, he said. They refer the boat loan customers to the banks.
Banks, credit unions and online lenders. Much of the remaining 20% of U.S. boat loans takes place directly through the lenders themselves. In researching rates from top boat lenders, we found APRs as low as 4.29% at online lender LightStream, a division of SunTrust Bank, and 4.29% at Essex Credit, a division of Bank of the West, as of publication. You also may be able to find competitive rates at credit unions or your own bank that may offer discounts to existing customers.
Shop around. If you do decide to buy a used boat, its important to make sure youre paying what the boat is worth. Consult an industry resource, such as NADAGuides to research values and prices in your area. Used or new, as youre determining which financing path works best for you, its crucial that you comparison-shop to compare rates and boat loan terms from a variety of lenders.
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What To Consider Before Building And Financing A Lakeside Boat Dock:
#1. Stationary vs. floating
Stationary or permanent docks are typically built on wood or concrete piles. They are stable and strong when installed properly. While floating docks can be more versatile, they can rise and drop with water levels. Floating docks float on the surface of the lake, hence to their name. Before building a lakeside boat dock you should consider whether you need a stationary or floating dock.
#2. Depth of water and lake bed
If the lake bed is rocky or has a big drop in depth it may not be an ideal spot to build a dock. For best results, the lake bed should be as flat as possible and sandy. If you have a less than ideal lake bed and unreliable water depth you should consider building a floating dock.
#3. Materials
You may be tempted to use materials such as wood because its cheaper but you should remember that better materials can last longer. If you live in an area with harsh weather conditions you should do your research to select the most durable material for conditions.
#4. Hire a professional or DIY
If you are pretty handy with a nice collection of tools you may be able to build a small floating dock on your own. However, building a dock can be complicated especially if you lack experience with waterfront structures. In most cases hiring a professional is a worthy investment to ensure your dock is built properly.
How Expensive Is Owning A Boat
Boat ownership is a dream for some of us, until we find out what owning a boat really costs. Of course you have the initial cost of purchasing a boat but thats just the beginning. On top of purchasing the boat youll need to store or moore, maintain, insure, register, and fuel the boat. In some states you may even have to pay a boat tax. If you cant keep the boat in the water all-year, you may need to pay for winter storage which can cost about $2,000. Maintenance costs can vary but you can estimate annual maintenance costs at about 10% of the cost of the boat. When considering what you can afford as a monthly payment for a boat loan you should consider the extra expenses you may have to come out of pocket for.
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Financing A Boat With Tom George Yacht Group
At Tom George Yacht Group, our goal is to simplify the financing process, secure the best financing terms for our clients and help buyers clearly understand the financing options available to them. We take an educational approach to financing with an aim towards long-term relationships.
Our finance professionals will educate you on your options and help ensure you make the right decision for you. With an emphasis on your long-term satisfaction, Tom George Yacht Group is focused on building relationships with customers that regularly recommend TGYG to friends and family.
If you have any questions on boat loans or financing a boat, please contact us today.
How Long To Finance A Pontoon Boat
If you’re looking for a recreational boat to float on the water with your family and friends, a pontoon boat may be the best choice for you. Historically, pontoon boats have been slow-moving, making them great for outdoor activities like fishing, sunbathing and swimming. Today, pontoon boats are a bit faster, and because of their simplicity in design, manufacturers can create high-end interiors that offer a luxury experience.
The financing for a pontoon boat is similar to that of other boats. Like all vessels, new pontoon boats don’t hold their value and may depreciate quickly in the first few years, similar to a new car. Typically, the rate of depreciation slows over time, but it’s still something to keep in mind. Similar to a bass boat, your financing will be based on the pontoon’s characteristics and your financial history.
If you want to know how a loan term can affect your monthly boat loan payment, use our boat payment calculator. Simply input your loan amount and interest rate and try different loan terms to see how the number of years you finance your boat may affect your payment. This calculator works for all boat types.
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Fallen In Love With A Boat Compared With Auto Loans Financing A Boat Can Be A Much Heftier Investment
Boats can be more expensive than a car, which means loan amounts can be higher and terms can be much longer.
Just how much you pay to finance a boat depends on a number of factors, including the type of boat loan you choose, the loan terms, your down payment and your credit.
Lets take a look at the different types of boat loans, your financing options and how to apply for a boat loan.
Can I Finance A Boat With Bad Credit
Boat loans tend to have stricter credit requirements than mortgages and auto loans do, because they’re considered luxury items. You shouldn’t have any problem with a FICO score of 700 and above, but the further your score falls below that, the more challenging it will be.
Not all lenders have the same credit requirements for boat loans, so just because you’re turned down by one doesn’t mean you won’t be approved by another. Shop around. Be aware, though, that lower credit scores mean higher interest rates often dramatically higher.
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Best For Quick Funding: Lightstream
LightStream
- Minimum credit score: None, but good credit recommended
- Loan terms : 24 to 84 months
For borrowers looking for fast funding for a boat loan, LightStream is a great option. The lender offers same-day approval and even same-day funding in some cases.
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Funds deposited as soon as same-day
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Rate Beat program
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No fees or collateral required
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Available for buying or refinancing a boat
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Offered in all 50 states
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Loans cap out at $100,000
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Maximum rates can be high
As part of the Truist bank family, LightStreamalong with SunTrust and BB& Tprovides a variety of banking products and services to customers across the country. This bank operates in all 50 states, offering loans on new, used, and refinanced boats to qualified applicants ages 18 and over.
We chose LightStream as best for quick funding because this bank offers not only same-day approvals but same-day funding in many cases. You can choose your own funding date once approved for your boat loan, even if its the same day you applied.
Boat loans through LightStream are offered from $5,000 to $100,000 with repayment terms ranging from 24 to 84 months. Current interest rates range from 4.29% to 11.89% APR with a 0.50% auto-pay discount. They also offer a Rate Beat program, which promises to offer a rate thats 0.10% lower than the rate offered by a competing lender within the last business day.
How Do Boat Loans Work
There are two ways you can get finance for a boat, similar to getting a car loan. You can buy a new or second-hand boat using either finance option:
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Modern Boat Financing Options
Even if you have the cash to buy a boat on the spot, its important to consider your loan options. Financing can help you maintain liquidity, but more importantly, it might also help you get into a more expensive dream boat that might otherwise seem out of reach. And boat financing today is much different than it was in the past. Boat loans used to be more limited in duration, but today terms of 10 to 20 years are quite common. Interest rates are amazingly low. And the down-payments required these days can range anywhere from no-money-down to 20-percent.
Remember, however, that if you can swing shorter terms and a higher down payment, youre likely to get even more favorable interest rates. Larger loans often get a more favorable rate, tooso in some ways, buying the more expensive boat can actually save you money. At least, thats one way of looking at it. But in our humble opinion, all of these aspects of boat financing and boat loans are a lot less important than the bottom line: you, friend, get a brand-new boatand life is about to become a whole lot better. Now thats what we call favorable terms.
