Community Forums

Gadget Man · 01-03-2011, 02:39 PM

I saw an ad for Essex Credit corp. in the latest issue of MH magazine, advertizing RV refinance rates as low as 5.99%. I figured this was probably just a teaser rate, but I’m currently at 6.75%, so I figured what the heck, I’ll bite...

I submitted my application online over the weekend. I received an approval email today, at 5.29%, which is lower than their advertized rate. I’m stoked!

Craig

**NLOVNIT** · 01-03-2011, 04:03 PM

That's a substantial savings of interest when you have a balance. It works in your favor as long as you re-fi for the same amount of years or less than what you currently have left & as long as the filing fees (usually a % of the loan) don't eat up your savings.

Lori-

scenic route · 01-03-2011, 04:13 PM

Congrats, Craig...It's very nice to get a "plus" mark on one's side of the ole chock board every once in a while....

Gadget Man · 01-04-2011, 08:30 AM

Quote:

Originally Posted by NLOVNIT

That's a substantial savings of interest when you have a balance. It works in your favor as long as you re-fi for the same amount of years or less than what you currently have left & as long as the filing fees (usually a % of the loan) don't eat up your savings.

Good point. In my case, there is a $290 loan fee, but the length of the loan remained the same, while lowering my payment by $120.

Lindsay Richards · 01-04-2011, 01:33 PM

I am in the process of refinancing my motor home through Good Sam which uses Essex Credit. It seems to take a long time, but I was doing it over the holidays. I have to pay the $290 charge as well as two different state fees. They used 110% of the low retail NADA value as the max loan amount. I was at 7.5% from when we bought it and will be saving about $130/month, so in just a few months, I will be ahead of the game. Be sure to get any refunds from your first mortgage company if the loan takes longer than you thought.

GaryKD · 01-04-2011, 01:54 PM

Sounds like ya'll are going to have more gas money.

I was turned down. It seems like I owe too much on my coach.

That's okay, I'll have it paid off in 6 years. However, a little more $s, in the pocket each month would have been nice.

**NLOVNIT** · 01-04-2011, 04:22 PM

Quote:

Originally Posted by GaryKD

... That's okay, I'll have it paid off in 6 years.

With us, it's 2 years & that's just when the extended warranty runs out. That must mean it's time to trade up & start all over again.

Lori-

dajudge · 01-04-2011, 05:24 PM

I did the on line application and it was approved. I got a call today from Essex and the guy told me I was approved at 7.5%. When I asked him about the 5.99rate, he said that was for 50k and over. I told him no, thank you, my current loan is at 6.25%. I will just stay with what I have and have it paid in a few years.

**NLOVNIT** · 01-04-2011, 05:57 PM

Quote:

Originally Posted by dajudge

I did the on line application and it was approved. I got a call today from Essex and the guy told me I was approved at 7.5%. When I asked him about the 5.99rate, he said that was for 50k and over.

Yeah, the fine print & * gets ya every time. I looked up that ad &, sure enough, just past the Restrictions may apply line, it stated the "as low as" 5.59% rate were only for loans of $50,000 & greater & with a maximum 17-year loan term. I guess the bank doesn't make enough to go any less.

Lori-

gallopn'go4r · 01-05-2011, 07:54 PM

Just started to post a question regarding Essex when I noticed the OP. Great rate

phxmtngirl · 01-06-2011, 11:42 AM

Oh my, 17 years on a loan??????
Who would do that???

Lindsay Richards · 01-06-2011, 11:50 AM

20 year loans are normal on RV purchases.

GaryKD · 01-06-2011, 12:25 PM

Hi phxmtngirl,
There are many reasons for a long term loan on a motor coach (20 years).
1. An example is cash flow. I own businesses and cash flow is very important.
2. Flexibility is another key ingredient. $s in the bank, consistent $s coming from revenue and the lowest possible out flow of cash means I have the flexibility to make choices with regard to additional investments I would not have if the out flow of cash was high.
3. One can always pay off the loan early. I have a plan to pay my coach loan off much earlier than the 20 years it was contracted for. When my date to pay off the coach arrives, I will weigh the payoff business case against other investments that are attractive, to me.

The bottom line is it all depends on how each individual conducts their financial life. Borrowing $s on a coach may be a lot easier that borrowing $s to purchase a business or other asset.

However, #1 and 2 are important to me right now. There are bargains to be had in most all businesses, if one has the right balance sheet.

srx-6 · 01-06-2011, 12:57 PM

We are among the lucky ones today. We recently moved from CA to TX due to a job transfer

. We sold the stick house in CA and bought one here in TX. We will retire in 4 to 5 years so we got a 5/1 arm here in TX. The first 5 years are at 2%, so we kept back enough to pay of the motorhome which was at 6.99%

. Man what a good feeling to write that last check. Now we just have to find more time to use the motorhome.