If you are owner of a boat it will provide you more enjoyment on the water whether you are expert sailor or common fisherman. If you are buying for a new boat Financing is an option.
According to the data of The National Boat Owners Association that watercarrier can vary in cost from fifteen thousands dollars to five lacs dollars.It all depends on size and type of the boat. Sailboats and Yachts lot costly than pontoon boats and fishing.
In this article I penned some boat loans and how they work.
Types of boat loans
You can access secured or usecured boat loans.The main difference between unsecured and secured boat loans is the need for collateral.
Unsecured loans
Lenders do not require collateral with unsecured loans because there is no asset securing the loan.These loans may have higher credit score requirements and higher rates.
Secured loans
Your boat will serve as collateral with a secured boat loan known as marine financing or marine loan.Your lender can seize it if you unsuccessful to make your monthly payments.
You may need to done a down payment between 10% and 30% of the vessels buying price, however requirements vary by lender. In secured loans case your is secured by your boat and your lender may be desire to offer you a less interest rate.
How boat loans work
Boat loans are installment loans you pay back over a set conditions, which can be as long as 20 years depending on your lender. Generally these boat loans come with fixed rates meaning your monthly payments would not change over time.
However some boat loan lenders may also offers variable boat loans. Rates and long terms differ by lender. Having good credit will assist you to get the the superb terms and rates.
How to choose a boat financing option and apply
To chose Potential boat lenders consider following
Type of loan
Do you require unsecured or secured loan options?
Applicable fees
Do any origination fees other fees or penalty apply
Borrower Requirement
What are the credit score and financial requirements?
Loan amounts
Does the lender offer loans large or small to suit your situation?
Down Payment Requirements
Does your lender demand a down payment?
Loan terms and rates
Are annual percentage rates competitive?Are you satisfy with total costs and monthly payments.
You may need to provide the following information
- Address
- Name
- Social Security Number
- Phone Number
- Proof of identity
- Proof of income
- Proof of address
- Loan amount
- information about the boat you desire to buy
- Copies of past tax returns
- Copies of bank statements
Where to get a boat loan?
Various types of lenders offers boat loans including
- Bank
- Boat dealer
- Credit union
- Online lender
- Specialty marine lender
Loan from boat dealer is very easy but it is better to compare loan offers from other lenders. The boat dealer would not offer the best terms or rates.Various lenders may require a bold credit history to pre qualify for boat loan.If you have bad credit it may be more complex to finance the boat of your dreams.
