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best boat loans?

Old 12-08-2004, 06:13 AM
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Need some advice on a good company to get a boat loan from. Best rates, service, etc. always pd cash before, but moving up is forcing a loan. Any ideas based on previous experience?
thanks
jim
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Old 12-08-2004, 06:18 AM
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I just used Vinnie Luzietti, Trident Funding Corp. I borrowed 50K @ 5.25 for 15 years and it only took a week for all of the paper work through FedEx. 203-944-6555
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Old 12-08-2004, 06:50 AM
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Ditto on Trident. Vinnie came through @ 5% for a 200k loan for us in Sept. Would absolutely go back. His phone is 1-888-FUND-888 or cell is 1-203-394-3434.
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Old 12-08-2004, 07:59 AM
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The "Best" loan is a home equity line because the interest is tax deductible.

Great Credit etc, you are looking prop at 4.5-5% interest only with a variable rate based on prime.

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Old 12-08-2004, 08:58 AM
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Maxpauper is correct. Unless your boat qualifies as a "second home" (permanent facilities for sleeping, cooking and sanitation), the only way you can deduct the interest on your tax return is a home equity loan secured by a mortgage on your personal residence.
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Old 12-08-2004, 09:37 AM
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I've financed both ways. There can be two traps to the home equity loan. First, if the interest rate is variable and the prime moves a lot, you'll be paying an increasing amount of interest. I doubt it will move that much to make a difference in the short term, but its something to consider. Second, if the loan only requires interest only payments, you could end up paying interest on the ENTIRE principle amount for quite some time if you never pay it down month to month. I know, the plan will be to pay a certain amount of principal each month. I had the same plan, but guess what? When you have the option of just paying the minimum and you need to pay other bills (or buy other toys), you never pay down the principle. Plus, I was really uncomfortable having my house as collateral for a rapidly depreciating boat.

So, if the boat qualifies as a second home, and you don't already have one, consider a conventional loan. The rates are still good. If you only need the money short term, and you are reasonably confident you will pay off the loan quickly, run the numbers on a Home Equity.
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Old 12-08-2004, 09:48 AM
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I just did a home equity and for my new boat and its a really good idea. You get to write of your intrest and your just paying the money back into the equity of your house not a bank. I got 6% fixed for 25 years for 65K. They auto deduct from my pay so the boat is actually paid of in 13 years. look into it before you go with a regular boat loan.
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Old 12-08-2004, 09:56 AM
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Ditto the home equity loan. Shop around, look at the details.

I got an equity loan package from the same lender (Bank of America) that holds the first loan. We have good credit, it was real easy to do. Very favorable rate and terms, a good deal for both parties. The interest is deductible.

We did about $ 50K in a boat and a Suburban over an 18 month period starting three years ago. Owe around $ 10K now. I had hoped to have it paid off by now, but the cost to carry is not too bad.

Best way to go.

jocko
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Old 12-08-2004, 03:50 PM
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First Commercial Credit 732-223-6100 have been in business 30+ yrs
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Old 12-08-2004, 05:07 PM
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fishcop - 12/8/2004 9:48 AM

I just did a home equity and for my new boat and its a really good idea. You get to write of your intrest and your just paying the money back into the equity of your house not a bank. I got 6% fixed for 25 years for 65K. They auto deduct from my pay so the boat is actually paid of in 13 years. look into it before you go with a regular boat loan.
I meant 15 years
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Old 12-08-2004, 07:25 PM
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If you are eligible to bank with USAA they just did a great deal for me. 4.9% for 10 years on $70k. I looked at the home equity loan and it would have ran 5.9% for a locked in rate.
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Old 12-08-2004, 07:28 PM
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E-Boat Loans...the ticket.
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Old 12-08-2004, 07:44 PM
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Bank of America. $25,000 and up 15 years 5.75%. Approved in 2 hours.
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Old 12-08-2004, 07:49 PM
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Check out boatUS....got 5.99% for 15 years....Mick
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Old 12-09-2004, 06:33 AM
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I would never put my house up to secure a boat loan. If the boat can't sustain it's own collateral than forget it. If for some reason you have to default on the loan, such as sickness or loss of job, you could lose your house. No boat is worth my house.
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Old 12-09-2004, 07:39 AM
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Huh?

If you get sick or lose your job, you sell the boat and pay off the loan and the mortgage on your house gets released. In the meantime, however, you get a nice tax deduction that is lost to you otherwise.
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Old 12-09-2004, 10:11 AM
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Huh??
Yeah sounds real easy but just look at all the boats that aren't selling just on this site alone. Plus if your sick or incompassitated in some way you think your going to be able to put the time and energy into selling a boat. Yeah so go for a broker now your losing up to 10% of your boats value. Where's that money comming from, your house? The boat is the collateral, unless you have the money put aside to buy out the loan to protect your house than fine use your equity but no more than what you can afford. I can't believe some people actually use up 75 -100% of their equity for a boat, especially for boats that already qualify for tax write offs. Nope not me.
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Old 12-09-2004, 11:37 AM
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One would have a problem if he is upside down on combined equity of the boat and the home. Otherwise, no problem. Liquidate the boat and get out of it.

It all comes down to equity. Upside-down is upside-down. Default on a big conventional note for a boat and be in a situation where the lender cannot repossess his $$$$... Sink it, burn it w/o insurance or get otherwise upside-down... I bet you still lose your home equity in the end. It will go away in the bankruptcy. ???.

I don't think there is any way to stick a lender and walk away with something of value, such as a paid-off home. Perhaps in Florida, however, I think that only applies to civil judgements.

I dunno, maybe the solution is to incorporate?

jocko
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Old 12-09-2004, 11:57 AM
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Default RE: best boat loans?

Generally speaking, a home equity loan for a boat is a good way to go. Comparable rates, write off etc. The misconception here is that if you default on the home equity loan, you will lose your house. If you have a first mortgage already in place then you can't lose your house since the home equity mortgage is in "second" place. Only the first or "purchase money" mortgage can be foreclosed. The second would be paid out of the proceeds from sheriff sale due to default on first mortgage, that is if there is enough left over for the second mortgage.

However, generally when a first mortgage is foreclosed, they close out all other interested parties in court. Including second mortgage holders.

Now the best way to go (and the way I'm going) is a line of credit against the equity in your home. Same or better rates, write off advantage and your payment is based on the outstanding balance. So, if you take out a $50k line and pay $50k for the boat, your payment is based on a $50k loan at say 5%. Now, if you dump $10k into the loan, your payment goes down dramatically since a line of credit payment is only based on the outstanding balance. You'll end up paying much less if you keep on top of it.

With any other loan, your payment will always be the same until it is paid off.

I should mention, that if you have no mortgage on your house, then a line or mortgage would be in first position and then a foreclosure could cost you your house. Of course you could always sell the house and pocket the difference.
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Old 12-09-2004, 12:53 PM
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Good info., WEAKFISH.

Line of credit, that is what I did as well. I see that it is different from a true "second note". Effect was the same, I dipped into equity to buy a couple of toys. After two years, I have it mostly paid off. The net interest paid has not been too painful.

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