Interest Rates

[majfrizz]

we are finalizing the last minute issues until the new Tour arrives. I know there are numerous variables on banks determining the interest rates they charge whether home lone or an RV loan. Such as credit score, down payment, loan to value ratio, total debts, etc. so I know the answers I get here will probably be all over. And recently home loan rates have started to climb again. Just wondering what kind of rates have anyone seen lately. I have found out I can get a RV loan thru the dealer for about 2.49% fixed. that is better than either a HELOC or a home mortgage at this time.

just curious

[EngineerMike]

vehicle loans are not as straight forward as with real estate. Ask the bank what your payoff would be in each of the first 5 years. You will probably find the payments are well front loaded, and that you wind up owning substantially more on the rig if paid off early than you suspected. People do trade-ins, never do the math & can never figure out why they never get ahead in principal payments.

I think it works that the total interest is calculated, then pushed into the early payments more heavily than later payments. There should be a section in the contract that spells this out; starts like "payments shall be first credited to ..."
A low interest HELOC might be better for you overall. Look at how much total money it would take to pay it off, then look at what if you paid (in each loan case) at various points.

[Selah]

Wow, 2.4% sounds really good, almost too good to be true. Doesnt meen its not true but should be subject to extra scrutiny. I would follow EngineerMike's advice and check out the fine print. What you want is a "simple interest loan" with no early payoff and no balloon payment.
If your house is clear you might compare that to a standard home mortgage. The mortgage exemption on your taxes might make up the difference in interest rates.