How to Decide on the Best Boat Loan for You
Buying a boat can be a big commitment. For those who place great value on enjoying the outdoors and creating memories with family and friends, purchasing a boat is one of the best, most rewarding investments they’ll ever make.
But buying a boat is usually no small purchase. In most cases, you’ll need a loan.
Many different types of boat loans are available. To determine what kind of loan is right for you, you’ll need to consider many factors, including how much money you can put down, how long you plan to have the boat, how much you can afford over a certain number of years, and how much interest you are willing to pay.
Your best bet is to speak with a boat loan professional like those at Sterling Associates. Our team is made up of experienced, knowledgeable experts who can match you with the perfect loan for you.
The most common loan is a fixed-rate loan. This simple, straightforward loan keeps the same monthly payment throughout the entire life of the loan. When the loan reaches its end, all payments have been completed by the borrower.
Another type of loan is a variable rate loan. With variable rate loans, the interest rates will fluctuate depending on interest rate indexes, such as the prime rate. Variable rate loans usually offer low introductory rates. They are good if interest rates are on the decline, and borrowers often pay less interest overall than with a fixed-rate loan. However, there’s no guarantee, and borrowers should plan on how to manage fluctuating rates.
If you don’t expect to have your boat for a long time, then perhaps a balloon payment loan is right for you. With a balloon payment loan, a large portion of the loan is pushed off until the final payment is due, making them great for someone who only expects to have their boat for a few years. These loans often have lower interest rates and are good for short-term borrowers.
For more information on these or other types of loans, talk to us at Sterling Associates.
We offer boat and yacht loans at the lowest possible rates while also providing professional, personalized financial service.