Traveling in an RV (recreational vehicle) is a great way to see the country. It allows you to stop wherever and whenever you like, and you never have to search for a hotel room or a restaurant. While there are many advantages to owning an RV, it can be expensive. If you bought your RV with a loan and you want to save on the interest you're paying or lower your monthly payment, RV refinancing may be a great option for you. Here's what it's important to know about refinancing-plus how to find the best deal.
Related: Refinancing a Car Loan: What to Consider
Just like there are various types of car loans, there are different types of RV loans, including RV loan refinancing.When you refinance an RV loan, you're taking out a second loan to pay off the first loan. Ideally, the second loan will have lower interest so you can save money over the term of the new loan. Alternatively, you could extend the repayment period of the new loan to lower your monthly payments.You make monthly payments on the refinanced loan until it's paid off. However, if you are unable to make the payments your RV could be taken by the lender, since it is collateral for the loan.
If you're interested in an RV loan refinance because you want to lower your monthly payment, you can look for a loan with extended terms. Some RV refinancing terms can be as long as 20 years, especially if you're refinancing a loan of $50,000 or more.You can find RV refinance loans for as little as $5,000 and as much as $100,000 with low rates. Be aware you may be required to pay a processing fee for the RV loan.
RV loan refinance interest rates depend on several things, including the lender you use and your creditworthiness. If you have great credit, you'll likely be able to get a lower interest rate. If you have bad credit, your rate may be higher. There are RV refinance loans with rates that range from 4.49% to 9.99% for those that qualify.Check out this guide to auto loan terms explained to learn more about loan terms and interest rates for vehicles.
Similar to car loan requirements, there are criteria to qualify for RV refinancing, including your credit score. Some lenders may require credit scores as high as 680. Others might not lend to you if you have a bankruptcy on your record or bad credit. Still other lenders may lend to you with bad credit, but you'll pay a higher interest rate.
In addition to the interest you'll pay on a refinancing loan, there may be other fees involved. These include administration fees and origination fees. They may be a flat rate or a percentage of the loan value.
Financing an RV, or refinancing one, is a lot like applying for an auto loan. Here are tips for finding a deal that can save you money.
Start by shopping around for the best rate you can qualify for. Often you can get pre-approved. Avoid doing this with too many lenders, however, or it may adversely impact your credit score.Start with your bank to refinance your RV loan. Also look into online lenders, which may be more flexible in their criteria to qualify for refinancing. And check with the company you have your current RV loan with to see what refinancing options they offer.If you want a lower monthly payment, shop for a loan that offers a longer repayment period. Just be aware that you may pay more in interest over the life of the loan with a longer term.
Just like with auto loan shopping, you need to understand your budget when refinancing an RV. Start your loan search by knowing what you're paying for your existing RV loan, including interest rate and monthly payment. If you want a lower interest rate, only consider loans that offer less than what you're paying. If you prefer to lower your monthly payment, look for a longer loan term than the one you've got.
RV loans may vary wildly in their interest rate and terms, so spend plenty of time exploring the options. If you have questions, call and speak to the lender. In addition to saving money, you also want to work with a lender who is responsive and available and has good customer service.
Refinancing RV vehicles offers perks. The first is that you may be able to refinance the loan at a lower rate than you are currently paying. Interest rates fluctuate over time, as can your financial situation. For instance, your credit score may be higher now than it was when you got your first RV loan, and you may qualify for a lower interest rate.A second benefit is reducing your monthly payment. If your first RV loan payment is weighing you down, refinancing could let you extend the number of years you have to repay the loan, which will lower your monthly payment.
Refinancing an RV will take a little time and research as you investigate your options, but it can be well worth it by saving you money on interest or lowering your monthly payment.
Learn More:
This article originally appeared on LanternCredit.com and was syndicated by MediaFeed.org.
Lantern by SoFi:
This Lantern website is owned by SoFi Lending Corp., a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636.
All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider's discretion. There is no guarantee you will be approved or qualify for the advertised rates, fees, or terms presented. The actual terms you may receive depends on the things like benefits requested, your credit score, usage, history and other factors.
*Check your rate: To check the rates and terms you may qualify for, Lantern and/or its network lenders conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender(s) you choose will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown on this website are from lenders and are estimates based upon the limited information you provided and are for information purposes only. Estimated APR includes all applicable fees as required under the Truth in Lending Act. The actual loan terms you receive, including APR, will depend on the lender you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the lenders and not by SoFi Lending Corp. or Lantern. Please review each lender's Terms and Conditions for additional details.
Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history, or credit rating. For details, see the FTC's website on credit
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Personal Loan:
SoFi Lending Corp. ("SoFi") operates this Personal Loan product in cooperation with Even Financial Corp. ("Even"). If you submit a loan inquiry, SoFi will deliver your information to Even, and Even will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lenders/partners receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender's and/or partner's conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Even, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Even's Licenses and Disclosures, Terms of Service, and Privacy Policy.
Personal loan offers provided to customers on Lantern do not exceed 35.99% APR. An example of total amount paid on a personal loan of $10,000 for a term of 36 months at a rate of 10% would be equivalent to $11,616.12 over the 36 month life of the loan.
Student Loan Refinance:
SoFi Lending Corp. ("SoFi") operates this Student Loan Refinance product in cooperation with Even Financial Corp. ("Even"). If you submit a loan inquiry, SoFi will deliver your information to Even, and Even will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lender's receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender's and/or partner's conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Even, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Even's Licenses and Disclosures, Terms of Service, and Privacy Policy.
Student loan refinance loans offered through Lantern are private loans and do not have the debt forgiveness or repayment options that the federal loan program offers, or that may become available, including Income Based Repayment or Income Contingent Repayment or Pay as you Earn (PAYE).
Notice: Recent legislative changes have suspended all federal student loan payments and waived interest charges on federally held loans until 08/31/22. Please carefully consider these changes before refinancing federally held loans, as in doing so you will no longer qualify for these changes or other future benefits applicable to federally held loans.
Auto Loan Refinance:
Automobile refinancing loan information presented on this Lantern website is from Caribou. Auto loan refinance information presented on this Lantern site is indicative and subject to you fulfilling the lender's requirements, including: you must meet the lender's credit standards, the loan amount must be at least $10,000, and the vehicle is no more than 10 years old with odometer reading of no more than 125,000 miles. Loan rates and terms as presented on this Lantern site are subject to change when you reach the lender and may depend on your creditworthiness. Additional terms and conditions may apply and all terms may vary by your state of residence.
Secured Lending Disclosure:
Terms, conditions, state restrictions, and minimum loan amounts apply. Before you apply for a secured loan, we encourage you to carefully consider whether this loan type is the right choice for you. If you can't make your payments on a secured personal loan, you could end up losing the assets you provided for collateral. Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on the ability to meet underwriting requirements (including, but not limited to, a responsible credit history, sufficient income after monthly expenses, and availability of collateral) that will vary by lender.
Life Insurance:
Information about insurance is provided on Lantern by SoFi Life Insurance Agency, LLC. Click here to view our licenses.