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Q: What determines my loan rates?
A: Rates are determined by lenders and vary due to credit score and situation. All of our loans are simple loans with fixed rates. Variable rates loans are only available through local branches. Items that keep your interest rate at it’s lowest are; putting money down on the loan and electing a shorter loan term when possible.
Q: What terms are available on RV loans?
A: Available terms will vary by lenders due to credit situation and the amount being financed. Generally the more you are financing the longer your loan can go. It’s not uncommon to find 10 to 20 year repayment schedules to help you afford the RV of your dreams.
Q: How much of a down payment will I need to put down?
A: The required down payment will vary depending on the lender and your credit situation. There are some lenders that will finance 100% of the purchase for good to excellent credit individuals, however, lenders usually recommend 10% to 20% down to receive their most competitive rates and terms. For individuals with lower credit scores lenders may require larger down payments.
Q: Does this loan have a prepayment penalty?
A: No. All of our loans are simple loans with no prepayment penalties.
Q: Can you set up a loan at my banking institution?
A:We work with several of the major banks and credit unions to be able to provide you with the most competitive financing available, while eliminating the hassle of going to the branch to complete the loan. Generally we are able to get the same or better rates and terms than you would get at you local branch, due to rate matching or dealer only promotions. Any loans that we set up with your lender will appear on your account, just as if you had set up the loan at the branch, without the headache of arranging your own financing.
Q: Can I do a loan in my business name?
A: There are some lenders that will do loans in the name of a well established or large business, but they require the primary principals of the business to act as a personal guarantor on the loan, as well as additional documentation, such as the tax returns, profit and loss statements, organizational documentation and more.
Q:What is a debt-to-income ratio and how does it effect getting a loan?
A: Your debt-to-income ratio (DTI) is the percentage of your monthly gross income that is committed to credit payments. When this is calculated, it not only includes your rent/mortgage, car loans, credit cards etc., but it also include the estimated new RV loan payment. Lenders generally prefer to see your DTI below 40%. If your DTI is higher than 40% it may make it harder to get a loan approval, or may result in higher rates.
Q: In addition to interest what other finance charges are added to my loan?
A: Besides interest there are no finance fees or charges added when working with any of our conventional lenders.
Q: Can I finance additional RV equipment or accessories in my loan?
A: Yes lenders will let you finance accessories, however, lenders may have may have limits or or require additional funds down that can be added to a loan. See finance specialist for more information.
Q:How long are approvals and credit reports good for?
A: Both credit reports and approval are good for 30 days.
Q: Can my spouse be listed on the title if I'm not on the loan?
A: Generally you can only have the individuals that are listed on the loan on the title, but there are lenders that will make exceptions on a case by case basis.
Q: Can I add a co-signer on my loan?
A: Yes. Most of our lenders allow co-signers to be added to the loan if needed. Co-signers are a great tool to help those with less established credit. Lenders look for co-signers with stable income and established credit the could easily qualify for the loan. By having a co-signer on a loan it also gives your lender additional assurance that the loan will be repaid.
Q: If I co-sign on a loan will it show up on my credit
A: Yes it will.
Q: Is specific insurance required on my RV if it's financed?
A: Yes. All lending institutions require both comprehensive and collision insurance to be held on the RV throughout the term of the loan, generally with no more than a $500 deductible. If insurance is not purchased you may be subject to the lender’s fees or consequences, as well as whatever legal ramifications may exist.
Q: What are the advantages of financing through the dealership?
A: Dealer Finance Managers are constantly exploring the ever changing rates and terms in the industry to be able to provide you with the best lending options available. Often they are able to get better rates and terms than dealing with the branch directly, while cutting out the hassle of arranging your own financing.
Q: Is my RV loan interest tax deductible?
A: Yes. Your RV may qualify for some of the same tax benefits as a second home mortgage. Of course, check with your tax adviser, but basically to qualify for these benefits, such as the deductible of interest on the loan, the RV must be used as security for the loan along with providing basic living accommodations such as a sleeping area, bathroom and cooking facilities. Remember, your RV may be qualified as a second residence, making the interest you pay tax deductible.
Q: What advantages are there in financing a RV over paying cash?
A: When you finance your purchase instead of pulling money out of investments to pay cash, you maintain your personal financial flexibility and maintain the ability to pay off the RV at any time. By not tapping into your financial assets to purchase the RV, you can take advantage of attractive new investment opportunities that might come along and the earnings from those investments can potentially exceed the cost of your RV financing. Financing you RV will also help improve you credit score. Your credit score declines due to lack of open credit or use. By keeping an open loan on your account for a reasonable amount of time, and regularly paying your payments on time, it will increase your credit score.
Q: How Does RV Financing Compare With Other Payment Options?
A: By paying with funds from savings or a 401K account, it may leave you vulnerable in the case of a calamity. Additionally, using funds from a HELOC leaves you with the uncertainty of a variable rate, as opposed to the fixed rate of an RV loan. HELOCs may often have limitations on the deductible of interest, and could limit your ability to sell your home. See your financial adviser for more information.