Boat Financing Information
Boat financing provides the means to buy a boat and make payments over a set time period. And, similar to home-buying, boat loans can be established over different loan lives. However, applicants should understand that using financing locks them into a commitment that may still require payments long after the boat gets old.
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New Boat Loans
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New boat financing tends to be available either directly from banks or from boat dealers. That said, potential customers can also compare different loan packages on the Internet or by phone. Preapproval with a lender tends to be a good idea since the buyer then knows how much boat can be purchased.
Used Boat Loans
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Lenders want to be sure what they will be financing in a used boat since the boat purchased frequently gets listed as the collateral. Financed used boats will need to be appraised for market value before the purchase loan gets approved. Appraisal fees range from $12 to $20 per foot of boat length.
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Alternative Financing
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A buyer could technically use a home second mortgage, a cash-out in refinance, or an equity loan to buy a boat. However, such deals then put a home at stake as collateral if the loan fails, waiving any homestead protections that may exist to fend off creditor liens and seizure.
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References
Resources
- Photo Credit boat image by pearlguy from Fotolia.com
