With any type of RV financing, what most people are concerned about is getting the best possible loan for their budget. Unfortunately, most people are also not sure how to go about getting the best RV financing. This is why it is so important that you not only educate yourself on basic financing principles, but also that you shop around for the best RV financing for your situation. Be prepared to examine your credit history, think about the loan amount you will require, how much down payment you can afford, and where you should get your RV financing.
Credit history is very important to the type of financing you will get on your RV. So, before you begin applying for your RV financing, get a free copy of your credit report and make sure that there are no errors and that you have not neglected any of your debts or financial obligations. Loan companies will look at this report carefully and will use it to determine your interest rate, loan amount, etc.
New RV financing will probably have the lowest interest rates. However, you will pay more for a new RV. The interest rate will be based on length of financing, the amount of the loan, and also your credit. Shop around online to find out what the average interest rate is on a new RV loan.
When you buy a used RV you will usually pay a slightly higher interest rate, but you will be saving on the purchase price. Loan companies sometimes will set a minimum loan amount and may not finance older used RVs, so ask first before applying.
Refinancing is fairly simple and is usually done to lower the monthly payment or the interest rate. However, many lenders will not refinance amounts lower than a certain amount and will not give you more than the RV is worth.
There are many online resources for financing your RV, so shop around.
Julie Jacobs writes articles about RVs, and how to finance them. For more information about RV Financing visit frvfinancing.com.