Many people dream of owning an RV (Recreational Vehicle) and taking it out on vacation for fun and adventure.
However, before you can hit the road, you will need to figure out how you are going to pay for the RV.
For most of us, these means considering RV loans.
Loan repayment terms for RV loans:
Most lenders offer a choice of repayment terms for RV loans (5 year, 10 year and 15 year loan terms are usually offered).
For more expensive RVs, many lenders will stretch loan terms up to 20 years.
Interest rate for RV loans:
A borrower can either choose to get an interest rate that remains fixed for the entire term of the loan,
or elect to get an adjustable interest rate. The introductory interest rate for adjustable rate loans will keep the payment
lower initially for the loan, freeing up some money for the borrower to purchase enhancements for the newly acquired RV.
Fees for RV loans:
Lenders will charge the borrower fees for RV loans. While the exact amount in fees will vary by lender, the fees are usually charged
as a percentage of the loan amount (points). For example, if you get an RV loan for $30,000 - a lender may charge you 1 point (which would be 1% of the $30,000 loan amount).
This would result in fees of $300.
Down payment requirements for RV loans:
Many lenders will want a borrower to put 10 - 20% down payment towards the RV. However, there are some lenders that will finance RV loans with 5% down or less.
Always contact a couple of lenders when shopping for RV loans. The interest rate and fees can vary widely by lender. Contacting more than one lender can help ensure that you are getting a competitive loan package and prevent you from paying thousands of extra dollars in interest charges.