Boat Refinancing Rates
When we first apply for a loan and purchase a boat, you need to make sure you will be financially stable enough to make the monthly payments. However, due to various circumstances, the monthly rate may end up being too high for your budget and can turn into a financial burden. If this is the case, or if you simply want to improve your credit score by getting back on track with your loan, you might want to check out different boat refinancing rates and options.
WHAT IS BOAT LOAN REFINANCING?
Boat loan refinancing is the same as other refinancing loans. Though the same institution that granted the loan usually offers refinancing options, refinancing can also come from a third-party. Depending on the options, you might go for a term of a longer length or go for the same loan term. Furthermore, the refinancing lets you lower your monthly loan deposit.
WHAT CREDIT SCORE DO YOU NEED TO GET A BOAT LOAN?
Applicants with a FICO score of 690 or higher can have a lower down payment and affordable monthly payments. According to the credit report company Experian, an excellent credit score is 750 or higher. Others with a lower credit score can still receive a boat loan but at higher rates. For example, those with a credit score ranging from 500 to 550 can get loans with an interest rate of about 12% to 19%.
WHAT ARE THE MOST COMMON BOAT REFINANCING RATES?
The boat refinancing rates greatly depend on the institution of your choice. The most common practice in the industry is for the refinancing rates to be between 3% and 7%. The rates themselves depend on your loan amount and the boat you have. In most cases, almost any type of boat is eligible for refinancing. What’s more, due to the development of the boat financing industry, you might find better options and refinancing rates for your boat than the ones you were able to get when you first applied for a boat loan, thereby increasing the benefits of boat refinancing.
Our boating crew at Vessel Vendor is happy to work with applicants with various credit scores to find the best boat loan rates for them. If you’d still like to learn more about the different boat refinancing rates and calculate your boat loan, use our boat loan calculator or contact a member of our crew at 561-600-5006 today.
*Post updated February 5, 2020*