6 Tips to Refinance Your RV Loan

Refinancing an RV loan is a little like refinancing a home.  In most cases an RV can be considered a second home.  Refinacing can assist a borrower by reducing their rate and ultimately saving the borrower. A borrower can also save money by extending the repayment time. 

Tips for Refinancing

Like refinancing a house, the refinanced second loan takes the place of the initial loan.  Here are six tips to keep in mind:

  • Look for different sources. In order to find the best refinancing source, a borrower should inquire with several banks or lenders and research their best option.  Sometimes the best contact can be found through the RV dealer. When researching, contrast the difference between lowering the payments and the payment terms to get a true idea real savings.
  • Research the net.  Another good resource for refinancing can be the internet.  A borrower can research and find companies that specialize in RV financing.
  • Look for loans without prepayment penalties or additional loan fees.  Extended warranties are always a good thing to examine closely because they are also figured into the loan price.
  • Know what to provide.  The age of the RV, the loan amount and the borrower’s credit rating are important facts of the loan. Knowing your information when applying can help when negotiating the loan terms.   Most RV loans can be completed over the telephone and approved within a few days.
  • Know if there is equity in your RV. Equity is the amount owed, divided by the value of the RV.  Lenders use the equity amount when determining eligibility. Some lenders will provide home equity loans, if the owner lives in it for more than 14 days per year.  Additionaly, there can be tax credits if it is determined to be a second home.
  • Loan terms run from 10 to 15 years.  It also may be possible to save money by extending loan terms to 10 to 15 years.  Because of the rising costs of RV, many RV lenders are willing to extend the terms. However, it is important to remember that the depreciation of the RV can greatly affect the equity position of the owner if the loan is extended for too long.

Comparing rates, terms, and companies is the key to a successful RV refinance.  In order to make smart financial decisions, consult a tax advisor.  Owning an RV provides a fun, secure way to travel and it's benefits will be enhanced when the financing worries are removed.

Need an Auto Loan? Get a Free Quote Here!