Boat Loans and What You Need to Know Before You Shop for Your Boat Financing
Loans July 20th, 2010Boat loans are considerably different than most other types of loans. Every boat loan is different so it is imperative to go with a company that specializes in boat loans. Because boat loans are considered luxury loans obtaining boat loans can be much than obtaining many other types of loans such as a car or a house loan. Given the current state the economy and the credit crunch obtaining a boat loan has become more of a challenge recently.
Boat loans are typically simple interest loans. Typically there are no prepayment penalties for paying off a boat loan early, although you need to read the fine print contained in every loan agreement. Boat loans are available in terms ranging from 36 months (3 years) to 240 months (20 years).
Interest rates are determined by several different factors. Credit score, Debt to Income, dollar amount, age of vessel and type of vessel are all factors which determine what rate and term a boat loan will have.
Boat loans are considered luxury loans and differ from car and home mortgages loans in many ways. As an example; A boat loan applicant must qualify individually as opposed to a car loan or home mortgage applicant where a co-applicant may be used to help in the approval decision.
Boat loans are not used to build credit, you need to have installment loan history on your credit report in order to be approved for a boat loan. Debt to income must be below 42% which means your total monthly expenses including your boat loan can not be more than 42% of your take home income. There are (no income verification) boat loans available for amounts up to 250k for people with excellent credit and a strong PFS (personal financial statement). However, most loans over 100k require 2 years of tax returns and a PFS.
Before you get a boat loan for a used boat a survey should be conducted on the boat whether the bank requires one or not. Surveys will locate any problems, whether mechanical or structural, that the naked eye or novice boater may not notice. If a bank requires a survey for a boat loan the survey must be presented to the lender before the boat loan will be funded. All boat loans must be accompanied by an insurance binder before the boat loan will be funded. Most insurance companies also require a survey whether a boat loan is part of the deal or it is a cash deal.
Whether you have had a boat loan in the past or this is your first boat loan, finding an experienced boat loan company will be one of your most important decisions of your buying experience. A smooth boat loan closing makes for a stress free transaction of your new boat purchase.
This article was provided to you by www.QuickBoatLoan.com We make selecting, financing and insuring your boat a pleasant experience while helping guide you through the entire boat ownership experience. Tagged with: boat Financing, Boat Loan, Loans,
July 20th, 2010 at 10:15 am
I'd suggestion contact your bank, credit card company or perhaps asking your family or friends.
July 20th, 2010 at 10:22 am
When your federal educational loans are in default, you have several options:
You can repay the loan in full.
You can negotiate a new payment plan with your lender.
You can "rehabilitate" your loan.
You can consolidate your loan.
Obviously option one is rarely attractive or possible for defaulted borrowers.
Option two (renegotiate) should be investigated fully – most borrowers skip this step, but it's probably the best option for most people. Call your lender and ask to speak to someone in the "Workout" Department. Explain your situation to them (there's nothing unusual about it) and ask what options are available to you for switching to a graduated, extended or income-sensitive repayment plan. If your lender will agree to change your repayment plan, a few regular payments will get your default status removed, and the new plan may be easier for you to keep up with.
Option three (rehabilitation) is really a specific form of a workout agreement. It probably won't help you much in your situation, because it requires an agreement between you and the lender that will allow you to make 9 consecutive on-time payments of some agreed-upon amount.
Option four is everyone's favorite, but you must absolutely understand what a consolidation loan will do. To keep this utterly simple – a consolidation loan is a brand new loan that will pay off your old, defaulted loan. A consolidation loan MAY lower your monthly payments, but understand how this works. A consolidation loan never lowers your payments by wiping away some of your debt – a consolidation loan lowers your payments by stretching out the length of your loan. If you pay less every month, you'll make many additional monthly payments, and – in the end – you'll pay far more back than you would have paid on the original loan.
As an example: Suppose I lent you $100 and you agreed to pay me back in 2 weeks by paying me $50 a week. You came back a few days later and explained that you weren't going to be able to afford to pay me $50 – is there something else we could do? "Oh, absolutely," I'd say, gallantly. "Instead of paying me $50 a week for 2 weeks, how about if you only pay me $10 a week for 17 weeks?"
See – in the end, you'll pay me back $170 instead of $100 – that's how a consolidation loan works. But remember – we're not talking a $100 loan for a couple of weeks – by the time you pay that $5000 loan of yours back over many years, you'll pay a few thousand more than you might have paid if you didn't consolidate that loan.
I've attached some information about consolidating from the Department of Education – take a few minutes to read it over. If you do choose to go this route, be sure to consolidate with a reputable lender (or directly with the government) and not with some fly-by-night operation that you learn about from some pay-per-click site shilled on Yahoo! Answers.
Good luck to you!
July 20th, 2010 at 5:32 pm
No one will "take over" your loans. You will still owe the money to your lender when you are in forbearance. They will simply add interest every month while you are making payments.
If you are asking about defaulting the lender will just contract out with a collection agency to start calling and hounding you to mail them payments. If you make 6 to 12 months worth of willing and reasonable payments you can ask your lender to "rehabilitate" your loan. This is when you are issued a new loan and pay off the one in default so you can get federal fin aid again. Again, rehabilitation can only be done after you have made 6 to 12 months of payments.
Try this site
http://free-college-information-usa.blogspot.com/
Free College information on financial aid for students, scholarship, student loans and more.