Thursday, March 23, 2023

Interest Rates For Boat Loans

What Is The Average Boat Loan Interest Rate

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The best personal loan interest rates range from 3 percent to 36 percent, with the average personal loan rate currently at 10.6 percent.

The average personal loan rate has steadily increased throughout 2022 due to rising federal rates. It is likely that these rates will continue to rise throughout the year. However, the actual rate you qualify for depends on the lender, your credit score and financial history, as well as the size of the loan.

Boat Loan Rates As Low As

Get ready to hit the high seas with boat loans that have no application fees, flexible repayment terms, and easy online account access. Use our Vessel Loan Checklist to help you during your boat purchasing process.

Thinking of Refinancing Your Boat Loan?

If you already have a boat loan, you can take advantage of great BECU rates when you refinance. Compare loan options with our Loan Comparison tool. For more information on boat loan refinancing, visit a BECU Neighborhood Financial Center.

Use our calculators to figure your boat payments and determine your best loan option.

Calculator How much will my boat payments be?

Calculator Should I use a home equity loan instead of a boat loan?

Earn a Better Rate

We periodically evaluate the credit rating of each member who has a credit card, personal line of credit, personal loan, auto loan, boat loan or RV loan with BECU. If you’ve improved your credit score sufficiently and your account is in good standing, you may earn a better rate . We’ll update your APR and let you know.

Loan Payment Protection Program

The Loan payment protection program provides financial assistance during times of hardship. LPP is an optional benefit offered through BECU.

  • Provides minimum monthly payments in case of involuntary job loss, disability or loss of life
  • Monthly program cost is based on loan balance and package options

To apply, call us at and ask about getting LPP added to your loan. View the Consumer Loan Payment Protection Contract.

Recent Boat Loan Rate Increases

Boat loan rate increases are at an all-time high, surpassing the mortgage rate for the first time in years. Before 2020, the average interest rate for boat loans was around 24.5%. COVID-19 came, and in some cases, provided financial forgiveness through loan freezes and extended repayment periods.

However, this sent ripples through the economy. To compensate, current boat loan interest rates began increasing. As of July 2022, they sit anywhere from 5.769.95%, with many analysts expecting this rate to continue growing.

Luckily, you can take a few precautions to prepare your finances for the coming waves.

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Lower Rates On Boat Loans

Looking to purchase that dream boat? After competitive marine finance rates that will beat your banks? If yes, you have come to the right place. Savvy has access to the most competitive boat financing options in the market.

Savvy has a long history and is very experienced in financing all types of assets including recreational vehicles. We pride ourselves on not just knowing how to deliver a cheap boat loan rate and repayment but also being able to talk your language as we have good knowledge on the type of assets you will be purchasing.

Are Boat Loans Secured Or Unsecured Loans

Boat Loans &  Financing

You can get a secured or unsecured loan to buy a boat. Unsecured personal loans often let you use the money for nearly any reason, including purchasing a boat. Since the loan is unsecured, it presents a slightly higher risk for the lender.

Because secured loans use collateral that can be repossessed by the lender, theyre considered to be less risky and may come with more favorable APRs or terms.

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Bank Of The West Boat Loans

Types of boats financed: Boats must be model year 2001 or newer to be eligible. Bank of the West specifically says that it finances standard or custom power or sailboats, multi-hull boats, pontoon boats, and electric boats. The lender also offers loans for high-performance boats, houseboats, and wood hull boats. However, it does not finance boats that can exceed 99 miles per hour.

5.34% to 11.14%

Loan amounts available: $10,000 and up for new and used boats, $25,000 and up for live-aboard boats. Loans over $2 million are available.

Watch out for: Credit score requirements. Bank of the West states on its site that it lends only to people with credit scores of 700 or higher.

Boat loans through Bank of the West and its lending division, Essex Credit, are a good option for people planning to get a boat loan of $50,000 or above.

A $10,000 boat loan with Bank of the West would have a starting interest rate of 10.19%, a $15,000 boat loan would start at 9.44%, and a $50,000 loan starts at 6.64%. While their rates for loan amounts over $50,000 are competitive, anyone looking for a smaller loan may find a better rate with LightStream.

It’s worth noting that this lender does have a loan processing fee that could add to your total cost of borrowing. A 10% down payment is also required for loans between $10,000 and $200,000, and percentages increase for higher loan amounts.

6.86% to 10.49%

Loan amounts available: $100,000 to $2 million

How Does Our Boat Loan Calculator Work

The Bankrate boat loan calculator helps borrowers calculate monthly payments for fixed-rate boat loans. Boat loans are installment loans, meaning that you make monthly payments on the principal balance plus interest and fees until the loan is paid back. Since boat loans have fixed rates, the interest rate you pay will never change over the life of the loan. Our calculator shows you the estimated monthly payment for your boat loan, based on the loan amount, term length and interest rate you enter.

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Boat Loans: Calculate How Much Boat Financing Could Cost You

Boat loans are available from a variety of lenders, including banks, credit unions, and online lenders.

Kat TretinaUpdated March 8, 2021

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as Credible.

Whether you love sailing, offshore fishing, or other water activities, you might consider buying a boat. However, boats can be expensive: Smaller vessels start at $10,000, while offshore fishing boats might cost $400,000 or more.

If you need to cover the cost of a boat or would like to refinance a boat you already own, a boat loan might be a good choice. Just keep in mind that youll likely need good credit and verifiable income to qualify.

Heres what you should know about boat loans:

Trident Funding Application Process

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You can apply online and even use Trident Fundings free boat loan calculator to see how much boat you can afford and what your approximate monthly payment will be. When determining your monthly boat budget, be smart. Allow for extra expenses including insurance, storage fees, cleaning, and maintenance costs. Boats, and all recreational purchases, are not one and done purchases, said Breeden.Simply answer a few questions online about your finances, the type of boat you want to buy, your credit score, and a loan specialist will contact you to match you with the most suitable boat loan for you. Each lender has varying requirements, but typically you will need to show the following during the boat loan application process:

  • State issued identification and your social security card
  • Proof of address for at least the past two years
  • List of assets and debts
  • Bank statements
  • Employment history
  • Tax returns or profit and loss statements: usually for the past two years

Your credit will be run, with your written consent, and all of your information will be double-checked, and a debt-to-income ratio will be determined. If an approval is issued, its time to purchase boat insurance, decide where your boat will be housed, schedule any necessary inspections, and goto closing. Trident Funding is there every step of the way to answer any questions as they help you sail through the application process and move onto enjoying your new boat.

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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.

What Do Lenders Look For In A Borrower

Making yourself a good candidate for lenders will go a long way in getting you low-cost financing for your big purchase.

  • Steady source of income. You need to show you have enough regular income to afford monthly repayments after bills and debt obligations.
  • Low debt-to-income ratio. Your current debts will also play a role. Lenders want to make sure you wont be overextending yourself and putting yourself at risk of default when you borrow a boat loan.
  • Liquid assets. Lenders often want to see that you can still handle payments should your employment or income situation change drastically.
  • Good to excellent credit. Lenders look for borrowers with good to excellent credit because it shows a history of paying your bills on time.
  • Experienced boat owner. Experience with a boat isnt a must, but it may make a lender more confident. Having had a boat in the past means you likely know the ropes.

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Best Boat Loans In 202: Finance Your Boat

Boat loans can be unsecured or secured by the boat. Compare financing options from online lenders, banks and credit unions.

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.

Setting sail on your own boat is a priceless experience. But unless youve saved a lot of cash, youll need a boat loan to make your dreams a reality.

Here are lenders that offer boat loans, plus information on how to finance a boat with a personal loan including unsecured and secured loan options. Learn where to find boat loans and factors to consider before applying.

Setting sail on your own boat is a priceless experience. But unless youve saved a lot of cash, youll need a boat loan to make your dreams a reality.

Here are lenders that offer boat loans, plus information on how to finance a boat with a personal loan including unsecured and secured loan options. Learn where to find boat loans and factors to consider before applying.

How To Apply For Boat Loans

Money Matchmaker®

You can apply for boat loans by comparing with All you have to do is check out the comparison table on this page and look at your options. Once you have selected an option that is right for you, click Go to Site to start your application.

To apply for a boat loan you will most likely have to be 18 years or older. You may also need a good credit rating and be able to provide details about your current financial position, using bank statements or employment details, to get approved. The application is generally quick and easy to complete.

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Compare Boat Loan Rates In January 2023

As soon as the same day Not disclosed
As soon as the same day 560
As soon as the next business day 600
Within 1 to 2 days of approval Not Specified
Within a few days of approval 680
Within 3 business days of approval 640
As soon as the next business day 600
As soon as the next business day 580
Within 1 to 2 business days of approval 680
Min. annual income:

Overview:Why LightStream is the best overall boat loan:

Best Commercial Loan: Coastal Financial

Coastal Financial

Why We Chose It: Coastal Financial is our top choice for the best commercial boat loan because the company specializes in charter boat financing and will also take care of setting up charter management and boat insurance for you.

  • Offers boat insurance and charter management

  • No upfront rates

  • No published loan fees

  • You have to contact the company for borrower requirements

Coastal Financial offers a quick application process and fast funding. It finances new and used boats, charter boats, refinances, and RV purchases. It offers boat loans from $5,000 $5 million and approvals take less than 24 hours. You can apply online or over the phone.

In addition to boat loans, Coastal Financial also offers U.S. Coast Guard documentation, boat insurance, and a boat charter management program. Coastal Financial offers commercial loans for yachts, fishing boats, catamarans, and sailboats. Youll need to contact the company for loan fees and specific loan requirements and terms as they are not available on the website.

Once the borrower and vessel are approved for a charter loan, you put the boat in your companys LLC and you can enter it into a charter program. You can choose how often you want the boat chartered, and when you want to use it, and the company will handle the rest.

Coastal Financial has mostly positive customer reviews with customers appreciating the marine industry knowledge, easy application process, and fast funding times.

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How Do Some Lenders Show Less Than 3% Boat Interest Rates

The internet is full of click-bait tactics, false advertising, promotions that dont really exist, and rates that arent updated and dont fit the product theyre being advertised for. Unfortunately, this is often the reality for the super low interest rates that some boat lenders claim to offer. Once you further inquire about these low interest rates, they have either expired, dont apply to loans for boats, or are conveniently no longer available.

In some cases, the companies are fly-by-the night companies looking to make some quick money before changing names or going out of business. In other cases, the rate may be low but the lender fees, points, application fees, origination fees, and a whole lot of other fees make the boat no longer affordable.

But, lets assume that you found a low interest rate, possibly 3%, 3.5% or even a rate under 3%, and its a real rate offered by an actual company that has been in business for a while. So, whats the catch? The loan term is for three years! You think, okay, no big deal, my car loan is a three year term, but a boat loan is usually for a much larger amount than a car loan, so your monthly payment is going to be huge! It may be even more expensive than your mortgage. And that is not the goal of loans for boats.

Thats exactly why reputable boat lenders and marine financing companies offer longer boat loan terms, typically between 10 and 20 years. These longer loan terms shrink your monthly payment, making it more affordable.

The Best Boat Loans Of January 2023

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Insider’s experts choose the best products and services to help make smart decisions with your money . In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.

The best boat loan depends on your budget, the type of boat you’re buying, and the age of the boat. From financing for small ski boats to full-size yachts, there’s a loan out there for most things that float.

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Bottom Line: What Is The Best Way To Finance A Boat

Owning a boat is a goal for many people, but purchasing one can be an expensive undertaking. For those who want to enjoy the boating life but don’t have the cash to purchase a watercraft outright, getting a boat loan with favorable terms and affordable payments is crucial.

The best way to finance a boat is with a loan that offers you the best possible interest rate, payment terms that fit your needs and low fees. Since each person’s financial situation is different, it’s crucial to shop around among reputable lenders for your boat loan.

You can work with lenders to get preapproved so you can see your potential interest rate range. Most lenders only require a soft credit pull for preapproval, so this lets you compare multiple offers without affecting your credit score.

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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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