How to Secure a Low Rate Boat Loan

A low rate boat loan can ultimately save money over the life of your loan.  While the exact rate a lender offers is ultimately up to that lender, some research and careful attention to your own finances could lead lenders to offer you a better interest rate.

Step One: Double-Check Your Financial Health

As with any loan, a boat loan lender will be checking your financial stability carefully.  Fortunately, you can request a free copy of your credit history once a year; check over your own credit history first, and fix any errors.

Boat loans also may have stricter requirements for your debt-to-income ratio, or DTI ratio; this is a figure comparing your monthly income with your monthly expenses.  By lowering any of your other monthly expenses, you improve your DTI ratio, and a lender could offer you a better interest rate.

Step Two: Consider A Higher Down Payment

If you can make a higher down payment, you reduce the overall amount of your loan, which means less risk for the lender.  They may in turn lower their interest rate as well.

Step Three: Check Several Lenders

Every bank and every lender sets its own interest rates.  By checking boat loan rates from a number of banks, you can be sure you are getting the lowest available rate for your specific needs.