Boat Refinancing Tips and Advice

Home - Boat Financing Tips - Boat Refinancing Tips and Advice

How great is it to save money on something that you already own? In today’s market that is a real possibility. Interest rates have remained at low levels for the last couple of years and the refinance industry has been booming. Many people have taken advantage of these rates to lower monthly housing payments, pay off credit card debt faster, and in general pay less for the privilege of borrowing money. In some cases people have refinanced their homes several times to take advantage of interest rate drops. So you may ask what about refinancing a boat loan. Can I also save money by refinancing my boat?

The answer is yes, although you need to do a little investigating. You may be able to save a substantial amount on your boat loan through refinancing at a lower rate. Sounds great, eh? Usually the decision is as simple as it appears to be: refinance at a lower rate save money and pay your boat off faster. However there are some circumstances that probably rule out the boat refinance option. If you intend to sell the boat soon or your credit is substantially worse than it was when you bought the boat, boat refinancing is probably not for you. However if you do not fall into those categories, boat refinancing can be a great way to save money every month.

The most critical factor in considering boat refinancing is determining what your current situation is. For example, are you trying to pay off the boat as soon as possible or reduce your monthly payments? Once you have determined what you are trying to accomplish finding the right boat refinancing is simple.

The Internet can be a great place to start shopping for a boat refinance loan. There are numerous companies offering boat refinancing programs with very low rates. However a word of warning be cautious of rates that seem too good to be true.

Some boat finance companies will offer a very low rate but then charge exorbitant loan origination fees. In that scenario you may actually end up worse off than if you had not refinanced because now you have to pay off the new boat loan fees in addition to the loan amount. The savings on the interest rate may not cover the additional boat loan fees and you end up paying more in the long run. Professional boat financing companies will charge a small fee for the refinancing service on the new loan but the rate reduction should more than offset the fee and leave you with smaller payments and a faster payoff schedule.

Like most things in life, you get what you pay for. The same holds true when looking for someone to handle the refinancing. Usually the company that offers the lowest boat refinancing rate is also going to give the least amount of service while charging the highest loan origination fees. It is always a good idea to have a competent professional handling your personal finances. With this in mind consider the company’s experience and level of professionalism when making your decision.


Thomas Schumacher

CEO ~ SeaDream, Inc.
Tom Schumacher is the president of SeaDream Inc., the leader in boat financing. He as over 20 years of experience in the finance industry and is widely regarded as one of the industry experts on boat financing.

Other Articles by Thomas Schumacher

Calling for Quotes vs. Pre Qualifying for a Boat Loan

Starting the boat financing process can be a challenge. Calling lenders for rate quotes over the telephone can sometimes be confusing; so before you make that step it’s best to understand how the process works. With any large purchase that is financed, customers want to get the best interest rate...

How to Buy an Out of State Boat

The boat buying process has evolved over the last few years. The internet has provided buyers with the ability to search the entire country for boats. Savvy buyers are using online resources such as Boat Trader, Craigslist, Yachtworld, etc. in order to find the best deal on their next boat....

So You are Thinking About Financing a Boat

Once you've made your decision to buy a boat the first thing that usually crosses your mind is, "How am I going to pay for it." The majority of purchases involve some level of boat financing, whether it's a credit line through the home, an unsecured loan, or a conventional...

Leave a Reply

Your email address will not be published. Required fields are marked *

Secured by thawte


This site uses cookies to offer you a better browsing experience. By continuing to navigate through this site or by clicking Accept, you consent to the use of cookies on your device as described in our privacy notice.

More Info