Avoid These Problems When Getting Your Boat Loan

Raritan Engineering Company your macerating toilet specialists would like to share with you these topics we thought would be of interest to you this month regarding some great ways to get a boat loan.

1. Check your credit. Your macerating toilet experts talk about how before applying for a loan get your current credit score and ensure your credit report is accurate. Scores above 800 may earn you a better interest rate. A free copy of your credit report is available annually from each of the three national credit bureaus at www.AnnualCreditReport.com.

2. Find the right loan type. A fixed-rate, fixed-term, simple-interest loan is the most common. This offers the same monthly payment for the life of the loan. Variable rate or hybrid options may offer a combination of a fixed rate for a few years, and then a variable rate.

3. Consider a HELOC. Buyers of smaller vessels often tap into their home equity line of credit (HELOC) to fund a boat purchase. That may work well if you plan to pay the boat off while interest rates remain relatively low.

4. Compare loan rates. Generally rates are lower and available loan terms are longer for newer boats and larger loan amounts. However, each is dependent on a variety of factors including model year, loan amount and down payment. Be prepared for banks to require larger down payments, have higher rates and offer shorter terms on older boats, especially those more than 20 model years.

5. Don’t be fooled by ads. You may see rates advertised as low as 3.99 percent, but there usually will be some small print that could make that loan less attractive. For instance, the rate might only be fixed for a few years or the loan period might be only seven years.

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6. Get pre-approved. To help save time, ask if you can get preapproval, or if you can possibly start the underwriting process before you have a signed sales agreement or even have a specific boat in mind.

7. Know your tax benefits. A boat can qualify as a second-home loan interest deduction if it has a berth, galley and head, so buying a boat with these features may offer a tax advantage.

8. Get it surveyed. For pre-owned vessels, hire a qualified marine surveyor to inspect the boat to ensure it is in good condition and you won’t have any unexpected repair bills. BoatUS.com/Surveyors can help you find one. Also, many lenders will require a marine survey.

9. Ask about closing costs. As with any loan, there are some fees involved. Sales tax, processing fees, title and registration and/or US Coast Guard documentation fees are common. Check with your lender to find out what to expect.

10. Calculate your monthly payment. How much can you afford? Go to BoatUS.com/Calculator to easily crunch the numbers. Your lender will also review your debt ratio and other criteria.

A contract is more easily enforced if it’s in writing. Dealers often use standardized purchase agreements, but buyers have a right to protect their interests. By crossing out terms that are inappropriate and adding optional provisions or contingencies, you can tailor the contract to protect yourself. Check out our “Buyer’s Toolbox” to see how you can obtain a sample contract. It’s good to remember that the initial cost of buying a boat is not the biggest expense of ownership. An annual budget should include your boat loan (if financed), storage or slip fees, insurance, operation, and maintenance fees. One surveyor told us he recommends that in the first year of ownership, buyers should be prepared to spend 10 to 20 percent of the purchase price for repairs and updates. Commonly called extended warranties, service contracts are actually repair insurance policies. It is important to know that while the manufacturer’s name may be written on the literature, they’re administered by a third-party company. Service contracts don’t create a legal obligation between the manufacturer and buyer, so before you buy a service contract, read it over and make sure you feel the coverage is worth the money

So don’t forget these pointers when trying to get a boat loan. 1) Check your credit; 2) always compare loan rates; and 3) ask about closing costs.

Millennials Who Sank A Boat Get $13,000 In Donations

A pair of millennials sank a boat they were not qualified to operate and received $13,000 in donations to buy a new one, according to the Daily Wire News.

Nikki Walsh and her boyfriend Tanner Broadwell decided to sell all their possessions and live a carefree life by sailing from island to island on a 50-year-old sailboat. Unfortunately, their dream came crashing to an end because of their lack of sailing experience.

After the couple sold all their possessions, they bought the boat and spent $10,000 on repairs. Once the repairs were done, they embarked on their journey. But there were two problems; they didn’t purchase insurance and neither of them knew how to sail.

Not knowing how to sail can be forgivable. It’s dangerous, but not uncommon. But not purchasing insurance on a vehicle is not forgivable. This particular couple has not purchased insurance for their next trip yet.

Boating Safety Tips. Whether you’re a new sailor or have years of experience, it’s always good to know/review boating safety tips. According to Discover Boating, the first tip is to always be weather-wise. Before embarking on a trip, you should always check local weather conditions. If you notice that the clouds are starting to darken and the winds are picking up, they suggest that you get off the water.

Pre-Departure Checklist. Discover Boating recommends that everyone who is sailing on the boat go through a pre-departure checklist. That means going through fire safety and tips on how to fuel up. Going through the checklist is a good refresher in case people have forgotten.

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