Factors that Affect a Motorhome Loan
Whether you’re buying a motorhome for the very first time or you’re an experienced RVowner, motorhome financing is normally part of the equation. If you’re in the process of purchasing a RV, then you need to sit down and do some homework before you get started. Every individual’s needs are different, so you need to decide what your needs are before you ever embark in the RV Loan application and ownership process. Assess your needs and then get started from there. Just be aware that there are three factors that will directly affect your loan as far as the interest and the terms are concerned.
Factor #1: Your credit score --- this is the biggest factor behind the interest rate and the terms that a lender will give you. It is a reflection of the type of credit risk that you are and will tell that lender how dependable you’ll be where paying back the loan is concerned. It is also what is referred to as a “door closer” or a “door opener” as far as the number of options available goes. The better your credit score is, the more options are available. Just remember that if your credit history and score are not that good, that it doesn’t rule out getting a motorhome loan.
Believe it or not, lenders do pay attention to extenuating circumstances that have affected your credit track record in the past, and they are not totally insensitive to this. If you can defend your credit history, they are more apt to approve you than deny you. One thing to be aware of is that you can always request a copy of your credit history from one of the credit reporting agencies (for a fee of course), but be careful not to do this too often as that will affect your credit score.
Factor#2: Your downpayment --- when you’re trying to get the best possible interest rate and terms on a motorhome loan, consumers have the tendency to forget what an influence the size of the downpayment can be. The rule of thumb used to be that a minimum of 10% for a downpayment would satisfy the majority of the lenders, but this is no longer the case. Some look for as much as 20% so be aware of this. The larger the downpayment is, the smaller your monthly payment will be. If you’re dealing with an online lender, they usually have an online calculator that will help you with this. Regardless of the amount that the online calculator arrives at, you need to know if you have that amount and can fit it into your budget.
Factor #3: The length of the term --- this is another factor that will affect the interest rate on your motorhome loan. The majority of the online lenders have flexible options. You can make smaller monthly payments over a longer period of time, or you can make larger payments over a shorter period. Bear in mind that the shorter the term of the loan, the larger the downpayment, the more likely you are to get approved. It’s just a fact of life, and if you educate yourself about these things, as well as learn how most lenders think, you’ll definitely be a step ahead of the game.
Why Choose PRC RV Financing?PRC RV Financing is not your typical RV and marine financing company. All of our loan representatives are experienced and have a financing background. They have done everything in the RV field from titling to sales and to F & I (finance and Insurance). And PRC RV Financing is actually in the RV business. In fact we are owned by one of the top RV dealers in the country and we know what it takes to get RV and marine financing deals done. And its easy, apply online for RV financing now, it’s that simple! Visit our secure online RV loan application for approval within 2hours*.