About Boat Loans
If you are in the market for a boat loan, there is a lot to consider before taking the plunge. In recent years, a lot of lenders have started offering boat loans in addition to real estate and auto loans. If you are looking to purchase a boat for sale and need a boat loan, here are some things to think about:
First, there are a few places you can get a boat loan. Banks and credit unions are usually the best place to look, and being a member might actually help you get a discounted rate. There are numerous factors that go into applying for a boat loan, similar to any other type of loan; such as interest rates, loan terms, your credit, and more.
There are three types of interest rates. The first, and most common, is a fixed rate boat loan. With these types of boat loans, you receive a fixed interest rate at the beginning of the process, and that will be your interest rate until you repay your entire boat loan.
The second is a variable rate boat loan. This is where the interest rate that you pay can, and usually does, change. These boat loans tend to have different variables (hence the name) which can cause the fluctuation of the boat loan rate, so be sure to read the fine print so you know exactly what you are getting into.
The third type is a balloon payment boat loan. When applying for this boat loan, you will pay a monthly rate, and then at the end of your loan term you will have to pay the remaining balance, which is usually a larger amount than your regular monthly payment.
After you determine which boat loan you would like to apply for, the boat lender will examine your debt and financial history, along with the cost/condition of the boat. If you have a rocky financial history, chances are boat lenders might not go forward with issuing you a loan. Things like bankruptcy, credit issues, and foreclosures make lenders think twice about offering you a boat loan – especially when buying a boat is considered a luxury compared to a car which would be classified as a necessity. If you are struggling with bad credit and would like to apply for a boat loan, read our tips on how to improve your credit score for a boat loan.
Most people are not aware that boat loan payments can be as low as $150 a month, making buying a boat easy and affordable. Depending on your boat loan terms, interest rate, and boat loan type, purchasing might be easier than you anticipated.
In addition to potentially having low boat loan payments, if your boat has a head (bathroom), a galley (kitchen), and a berth (sleeping quarters), it might qualify as a second home; which means the interest on your loan could be tax-deductible.
Ready to make the next step? Vessel Vendor works with boat lenders that are ready to help make your dream into a reality. Our boat lenders can provide you with competitive boat loan rates and financing options that can help get you on the water fast. Use the inquiry form to begin the boat buying process.