What Factors Determine My Mortgage Rate
Lenders consider these factors when pricing your interest rate:
- Loan term
- Interest rate type
Your . Lenders have settled on this three-digit score as the most reliable predictor of whether youll make prompt payments. The higher your score, the less risk you pose and the lower rate youll pay.
Lenders also look at the amount of your down payment. For instance, if you put 20 percent down, youre viewed as a lower risk, and you might get a lower rate than someone whos financing nearly all of their home purchase. From the lenders viewpoint, the more skin the borrower has in the game, the more likely the mortgage will be repaid on time and in full.
Rolling additional closing costs into the loan affects your mortgage rate as well. With these costs added to what you owe, youll typically pay a higher interest rate than someone who pays those fees upfront. Borrowers might also pay higher rates for jumbo loans mortgages above the limits for conforming mortgages.
Use our mortgage calculator to see how different interest rates, down payments, loan amounts and loan terms would affect your monthly mortgage payments.
Boat Loan Repayment Terms
Boat loan repayment terms vary from lender to lender. However, they can have terms that go up to 20 years time. This is almost as much as a mortgage. How much you pay per month depends on the cost of the boat, as well as the interest rate. The repayment terms are almost always per month. The longer the term, the less you will have to pay per month. If the repayment period is shorter, the payments every month will be larger.
Purchase A New Or Used Boat Jet Ski Or Watercraft With Competitive Rates Starting At 219%
At Greater Texas Credit Union, our goal is to assist our boat-enthusiast members with everything they need to set out into open waters. We provide secured loans for all types of boats, including pontoons, jet skis, personal watercraft, and more.
Members get great perks and features with our boat loans:
- Competitive Rates: Rates as low as 2.19% are available for qualified borrowers
- Flexible Term Lengths: Enjoy loan terms ranging up to 120 months
- No Prepayment Fees: Pay off your boat even faster and with fewer surprise expenses
- Zero Upfront Fees: Save more, guaranteed!
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Check Your Credit Score
Before applying for any loan, it is recommended that you check and understand your credit score. This has a lot to do with the loan terms and interest rates you will get when working with any lender. There are a number of free programs that can be used to check and keep track of your credit score. They include, but are not limited to:
What Is The Best Credit Score To Get A Mortgage
Lenders reserve their most competitive rates to borrowers with excellent credit scores usually 740 or higher. However, you dont need spotless credit to qualify for a mortgage. Loans insured by the Federal Housing Administration, or FHA, have a minimum credit score requirement of 580, although youll probably need a score of 620 or higher to qualify.
To score the best deal, work to boost your credit score above 740. While you can get a mortgage with poor or bad credit, your interest rate and terms may not be as favorable.
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Who Should Get A Boat Loan
You should get a boat loan if:
- You want to purchase your first boat but dont have the cash.
- You want to upgrade and buy a new boat.
- You want to buy a used boat.
- You want to refinance your current boat.
- You want to purchase a yacht and use it for charters.
A boat loan is usually not a good idea if youre living paycheck to paycheck and arent sure if you will be able to make the payments on time. Its also not a good idea if youre not going to use your boat very much, you may be too busy, or live somewhere with a short boating season.
You want to make sure that the high associated costs of owning a boat and financing it are worth it before deciding to get a boat loan.
Other Lenders We Considered
- US Bank: This lender’s loan interest rates weren’t the most competitive, starting at 5.24% for a new boat. The bank states that rates may be higher for private party boat purchases, loans under $25,000, and used boats. Ultimately, lower rates may be available elsewhere.
- USAA: USAA is only available to people with military affiliations, limiting the number of people who can access these loans. However, even those eligible could get a better rate from one of our top picks interest rates start at 5.25% with USAA, about a percentage point higher than a LightStream loan.
- Navy Federal Credit Union: Like USAA, membership with this credit union is only available to certain people. However, a starting interest rate of 5.95% for new boats and 7.45% for used boat loans mean there are better deals to be found elsewhere.
- Boat US: This online boat loan marketplace didn’t beat interest rates offered by other lenders. A high minimum loan amount of $25,000 also may be more than many borrowers need.
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How Do I Get Used Boat Financing
Used boats could offer huge savings over new ones. Still, prices can vary considerably, even for similar boat types, model years and history. Use an industry guide like Kelley Blue Book or NADAguides to check a boats value against the sales price to be sure youre getting a good deal. This is our guide on how to get a used boat loan.
Best Commercial Loan: 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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Best Overall: Bank Of The West
Bank of the West
Bank of the West is our top overall pick for a boat loan. The lender features low rates, flexible loan amounts, and widespread availability, making it a great choice for borrowers with good credit looking to purchase a boat.
Loans up to $5 million
Repayment terms between four and 20 years
Available in all 50 states
Full-time and liveaboard accepted
Fees can be rolled into loan
Rates as low as 3.59% APR
No cosigners allowed
Bank of the West is arguably one of the most popular watercraft lenders around. Founded in 1874, Bank of the West, also known as Essex Credit, operates and provides loans to creditworthy borrowers in all 50 states. Boat loans through Bank of the West can range from $10,000 all the way up to $5 million, with repayment terms from four to 20 years depending on the loan amount.
While the wide range of loan amounts and repayment terms is great, this lender wins our best overall spot because of the types of boats it accepts. Bank of the West offers to finance for boat model year 2001 or newer. Allowed boats include standard and custom power, sailboats, multi-hull boats, pontoon boats, electrical boats, high-performance boats, houseboats, and wood hull boats. One of Essexs few exceptions is boats that are capable of speeds of 99 mph or higher.
How Do I Apply For A Boat Loan
While every lender will have its own unique application process, in most cases, youll need to provide the same information when applying for a boat loan.
Once you have financing, you can start to shop for a boat that suits your needs just dont let a salesperson talk you into buying more than you can afford.
Will I need to know what boat I want before I apply?
It depends on the lender. Some might ask for a model and make, while others might allow you to apply for a ballpark amount, based on your budget. If youre unsure, ask your lender whats required ahead of time.
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Best Boat Loans Of 2021
- Best for Bad Credit: Southeast Financial
- Best Unsecured Loan: LightStream
- Best Commercial Loan: Coastal Financial
Why We Chose It: Essex Credit is our choice for best overall boat loan because it offers multiple types of loans including ones for borrowers who use the boat recreationally and for those who want to live on their boat. It has a simple online application process, has been in business since 1981, and offers long terms.
Multiple types of boat loans
Long history in the marine industry
Live-aboard loans which all lenders dont offer
You cant finance a boat that was manufactured before 2000
Some negative customer reviews
No short-term boat loans
Essex Credit is a division of Bank of the West. Its goal is to get you approved for a boat loan as quickly and easily as possible. It offers boat loans for new and used boats as well as RV loans and boat refinancing options. The company has mixed customer reviews with some customers appreciating the ease of the online applications while others had a difficult time getting in touch with someone from customer service.
The company performs an instant credit review when you apply for a boat loan online but funding times vary based on the type of vessel and type of loan. Essex Credit finances most types of boats except those that go over 99 mph.
Consumer Boat Buying Guide
Homes and cars represent some of the most expensive single-item purchases individuals make during their lifetimes, but spending doesn’t always cease at the shoreline. Boats add to the cost of living for water sports enthusiasts, who eagerly take-on the cost of ownership. And though boat buying is born of passion for the open water, a prudent approach makes the most of recreational budgets and ensures affordability.
As you prepare to take the plunge, due diligence guarantees a smooth transition to boat ownership. From choosing the best boat for your needs to securing reasonable financing, weigh your options carefully before making commitments.
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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 purchases 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, its 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 companys valuation/payout. Negative equity can also come back to bite you if you ever want to trade in the boat or sell it, as youll wind up owing your lender out-of-pocket in order to finalize the transaction.
Lastly, its 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, its 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 dont pay significantly more for your purchase over time than if youd paid in cash.
See What Our Members Have To Say
We have been with GTFCU for over thirty years and obviously have not had a reason to change. I am a financial services professional so I am aware of other options and have easy access to them. But GTFCU is fine for mobile banking and small enough that people take personal ownership of resolving any issues that arise. – Tom C.
Enjoy the credit union difference today and discover how low-interest boat loans provide everything you need to stem the tide and sail into your next adventure.
*Annual Percentage Rate
The APR you receive for the subaccounts will be within the range disclosed above and is based on your credit worthiness. Ask the credit union for the rate you qualify to receive.
**Used RVs and boats can be financed for up to 100% of NADA retail value or BUC price guide. Loans cannot exceed the purchase price. Rate based on credit qualifications and other restrictions may apply. Additional rates and terms available. Subject to credit approval.
***New member applicants may not be eligible for unsecured loan applications for a period of 90 days. All unsecured loan applications may require additional review and verification during the application process. No loan applications will be considered until membership applications have been completed and all information including identification verified.
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The Best Boat Loans Of September 2021
|Check rates > >|
*With auto-pay discount
The best boat loan depends on your budget, the type of boat you’re purchasing, 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. But they’re not all the same.
Once you’ve narrowed down the type of boat you’re interested in buying and what model year you’re looking for, you can start shopping for a boat loan. Many lenders will only finance certain types of boats, or require a boat to be newer than a certain model year. To make sure you make the most of your shopping, know this going into it.
There aren’t as many lenders offering boat loans as there are auto loans. But there are still a few to choose from.
Here are Insider’s top picks for boat loans in September 2021.
Types of boats financed: LightStream doesn’t list any specific requirements
4.29% to 10.39% APR, with auto pay discount
Loan amounts available: $5,000 to $100,000
Watch out for: High credit score requirements. LightStream only works with borrowers with good or better credit, so anyone with a low credit score may not qualify.
LightStream boat loans are a strong option for most borrowers looking for an inexpensive boat and fast funding.
LightStream is an online lender backed by Truist . With a completely online experience, same-day funding available, and many loan types offered, LightStream is one of our picks for the best RV loans and best personal loans.
Mortgage Rate Forecast For July 2021
Rates have remained enticingly low throughout the first half of 2021 lower than many experts predicted six months ago. And the outlook for July doesnt call for a radical rate leap, either.But several factors are in play that can easily result in you paying at least slightly more for a purchase or refinance home loan in the coming weeks or months. Thats the consensus opinion among the group of industry pros Bankrate recently polled, who envision mortgage rates edging marginally higher at worst or standing pat over the next month.
Over the next month, rates may rise a bit but will likely be pretty close to where they are today around 3 percent for the 30-year fixed-rate mortgage, says Leonard Kiefer, deputy chief economist for Freddie Mac in McLean, Virginia. While inflation has ticked higher in recent months, many analysts consider much of the increase in consumer prices to be transitory. Thus, even with higher inflation rates, mortgage rates have held pretty steady. Id expect these near historically low mortgage rates to stay through at least early summer.Learn more about specific loan type rates
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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.