Let's talk interest rates on 20 year RV Loans- please

[wnytaxman]

[QUOTE=JMonroe;3188529]

Originally Posted by BandSA

Interest/debt free or bust! __________________
... Why pay the bank interest money, when you yourself, could be saving that interest money just by having paid for it in the first place?

When the interest being charged is 3.75% and the return on our fairly conservative IRA investments are returning two or three times that we're "making money" on keeping the cash in our account. That's why. Not to mention, we still have that cash available for other uses, planned or not.

I understand the good feeling of being debt free, it' just not always the best money management strategy.

When you also factor in the tax savings by deducting the interest on your tax return and the tax deferral by having the money continue to grow in a retirement plan, the difference is pretty substantial. Putting everything together you may actually find that borrowing makes more sense.

[alpha99]

Originally Posted by WyoFree

Hey Jewels,



Not a thing wrong with financing for 20 years anymore than a home for 30! help!

Uh...completely different situations. A rapidly depreciating 'asset' vs. an appreciating asset. No comparison.

Cheers!

[WyoFree]

What may be more in line is one way you can enjoy a Motorhome and the other way you can't! Afford or not afford is up to the individual. If we go back to the main topic this discussion ain't it!

[plasma800]

[QUOTE=JMonroe;3188529]

Originally Posted by BandSA

Interest/debt free or bust! __________________
... Why pay the bank interest money, when you yourself, could be saving that interest money just by having paid for it in the first place?

When the interest being charged is 3.75% and the return on our fairly conservative IRA investments are returning two or three times that we're "making money" on keeping the cash in our account. That's why. Not to mention, we still have that cash available for other uses, planned or not.

I understand the good feeling of being debt free, it' just not always the best money management strategy.

My thought is you can only put so much in an IRA a year... we max both of ours. I'd still like to have maxed investment accounts, AND be debt free... that's a big win for me.

[silvrhand]

Originally Posted by WyoFree

Silv, are you a member of US Bank with checking and savings?

No we are not, qualified as a recreational vehicle, I'm a chase bank employee and use their services, but they don't offer RV loans.

[silvrhand]

Originally Posted by Spaceball

Indeed. I saved up and paid cash for my unit. I don't do credit cards either. Different strokes of course.

for me it's all about liquidity, paying cash means I have to take my money out of other investments.

[Honwing]

Just purchased a new 2016 Class A. Financed $100,000 of it for 20 years. With a credit score of 849 we we,re offered 3.7% from B of A. Our bank US Bank could not compete so we checked with Bank of the West who we have used before and we're offered 3.18%. We took it Every month my Teamsters pension is deposited in a separate account and makes the monthly payment. Painless this way. When we went full time in February we sold 2 homes and 90% of our belongings. Invested all of it and don't need to touch it. Enjoying our travels with no worries.

[Dennis Dean]

Originally Posted by WyoFree

Silv, are you a member of US Bank with checking and savings?

WYOFRee I answered this but NO you do not have to hold a checking or savings account. At least i certainly do not and was not told I had to join their banking division to secure my loan thru them.
Good Luck !!!

[Crasher]

In some cases as has been pointed out, it can make sense to borrow and make payments. For me, we do not like monthly payments. Our last three motor homes were each financed for two or three annual payments. Most banks won't do an annual payment. Our Credit union did. Worked great. It might have made sense to borrow long term and let our money work, but we like the debt free feeling.

[Steeljag]

Originally Posted by Honwing

Just purchased a new 2016 Class A. Financed $100,000 of it for 20 years. With a credit score of 849 we we,re offered 3.7% from B of A. Our bank US Bank could not compete so we checked with Bank of the West who we have used before and we're offered 3.18%. We took it Every month my Teamsters pension is deposited in a separate account and makes the monthly payment. Painless this way. When we went full time in February we sold 2 homes and 90% of our belongings. Invested all of it and don't need to touch it. Enjoying our travels with no worries.

Bank of the West web site shows only 15 year loans for RVs ?

[Dutchstar08]

If you fiance a play toy (RV, motor cycle etc) you should not buy it.

[JMonroe]

Originally Posted by Dutchstar08

If you fiance a play toy (RV, motor cycle etc) you should not buy it.

For some of us it's also our home.

[Liem24]

Originally Posted by Jewels

We are very close to pullling the trigger on our first Class A! Super excited- but no dealership is willing to give us rates until they pull our credit, etc. The bigger dealerships say they can get better rates (volume with the banking institutions)...but no can tell us exactly what to expect- just a range! We looked into Good Sam, but all the dealerships say they can beat Good Sam's 4.19%.

If you have purchased recently and chose the 20 year financing option- please share your interest rate. We have stellar credit and should qualify for the best rates!

Thank you

Hi there! Having a good credit score, does matter a lot. It's sad to say it, but there's no bank or financial institution that would get you a loan without having a thorough check on your credit score. Also you would get better rates only with a credit score above 700. But off course you can always try to boost your credit score. I remember reading an article on this. Let me try searching for it again. I hope I find it.

[Liem24]

Hey this is the article I was talking about. Six Ways To Boost Your Credit Score | NB Mortgage Team Check this out. Could be of some use to you.