Financing a 10 yr old MC

[neil.anderson63]

Originally Posted by CantRepeat

When I was looking to buy my 06 Bank of America want to charge me 13.75 APR on it. My beacon score has been in the high 700s to low 800s range and at one point was at 828 before I bought the boat. I could not believe a bank wanted to charge a home owner that kind of interest on an loan.

Called my credit union that I had not used in 15 years and they gave me 4.25 over the phone on a 7 year loan. After doing the paper work they gave me 4.0 and I went 5 years. Of course your mileage may very and I'm sure other members have plenty of info to share.

Watch out for those Bank of America programs!! In addition to their loan shark rates, they compute interest for the full term so there is not a financial benefit to pay the note early.

[east tx skier]

After 20 years, I got away from BofA altogether. Patronize local banks and credit unions where you can. Good service is a valuable thing.

[GoneBoatN]

Originally Posted by neil.anderson63

Watch out for those Bank of America programs!! In addition to their loan shark rates, they compute interest for the full term so there is not a financial benefit to pay the note early.

Not my case with my BofA loan. No pay off penalty (other than paperwork fee of a small amount) and decent loan rate. Not that I'm recommending BofA, it just depends on rates and terms at the given time. I check around in my area and Credit Unions were not offering competitive rates for boat loans.

[neil.anderson63]

Bof A does not penalize for paying early. There is no benefit of paying the note off early. Even if you pay the note ahead of schedule you still pay the full term total amount of interest.
So, if you pay your 10 year note off in 5 years - you're still gonna pay 10 years of interest to BofA.

[mikeg205]

Originally Posted by neil.anderson63

Bof A does not penalize for paying early. There is no benefit of paying the note off early. Even if you pay the note ahead of schedule you still pay the full term total amount of interest.
So, if you pay your 10 year note off in 5 years - you're still gonna pay 10 years of interest to BofA.

Always look at amortization schedule to before signing if you think you might pay off early.

[StudLEE]

Wow.. what a small world.. I'm from Wisconsin Rapids! And were constantly up north at the cabin on lake thomahawk! We financed a 88 Tristar last yr.. credit union borrowed 5k an I paid the rest cash.. good luck on your purchase!

[51timber]

I had nothing but problems in trying to buy a house with BOA even with great credit since I owned a business (president of a corporation). They on every level are a nightmare to deal with. My Local bank financed me in a minute! No problems and I have a great relationship with them ever since.

I financed my MC with http://boatbanker.com great company great rates no pre pay penalty.
Ask for Chris Stevens. He was a huge help!

[GoneBoatN]

Originally Posted by neil.anderson63

Bof A does not penalize for paying early. There is no benefit of paying the note off early. Even if you pay the note ahead of schedule you still pay the full term total amount of interest.
So, if you pay your 10 year note off in 5 years - you're still gonna pay 10 years of interest to BofA.

Not according to my paperwork - "You may prepay all or any of the unpaid principal balance at any time without any penalty which may reduce the number of payments you will make". It then describes how interest is calculated on the "outstanding balance...until the full amount of the principal has been paid". I've also contacted them and obtained a payoff amount from time to time each time I consider just paying off the boat loan; I assure you it is not the full value of the loan with interest but rather just the remaining principal. However, since I earn greater interest on having money in investments than the interest that I'm being charged on the boat loan, I continue to have the boat loan.

[neil.anderson63]

GoneBoatN - That's good news for you - BofA is very tricky to deal with in any type of transaction. Is it spring yet???

[mikeg205]

Originally Posted by GoneBoatN

Not according to my paperwork - "You may prepay all or any of the unpaid principal balance at any time without any penalty which may reduce the number of payments you will make". It then describes how interest is calculated on the "outstanding balance...until the full amount of the principal has been paid". I've also contacted them and obtained a payoff amount from time to time each time I consider just paying off the boat loan; I assure you it is not the full value of the loan with interest but rather just the remaining principal. However, since I earn greater interest on having money in investments than the interest that I'm being charged on the boat loan, I continue to have the boat loan.

Great!! - then it's a simple interest note that calculate interest on the daily average balance...but it the maximum term is 120 payments...you're largest interest payments will still be front loaded. So paying off faster is still in your best interest.