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Old 16-07-2011, 12:00   #1
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Boat Loan

Does anyone have any information regarding getting a boat loan? I have gotten mortgages for houses in the past but I want to buy a boat and was wondering if anyone could recommend anything. I am based in the northern chesapeake & southeast Pennsylvania region
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Old 16-07-2011, 21:01   #2
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Re: Boat Loan

Quote:
Originally Posted by advocate777 View Post
Does anyone have any information regarding getting a boat loan? I have gotten mortgages for houses in the past but I want to buy a boat and was wondering if anyone could recommend anything. I am based in the northern chesapeake & southeast Pennsylvania region
Key Bank is probably the largest lender for boats.

https://www.key.com/html/boat-loans.html
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Old 16-07-2011, 22:12   #3
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Re: Boat Loan

I gotta believe that one of the best qualities of a boat is that it is paid for.
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Old 16-07-2011, 22:33   #4
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Re: Boat Loan

I don't believe in borrowing to purchase toys. (I apologize for that irrelevant remark.) Would the boat qualify as a second home making interest payments deductible from income, assuming you aren't subject to minimum tax and other rules reducing/eliminating your deductibles (and further assuming you're subject to US and its states' income taxes)?
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Old 17-07-2011, 16:32   #5
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Re: Boat Loan

Thanks for the tip regarding Key Bank - I appreciate it!
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Old 17-07-2011, 17:19   #6
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I just sold a boat with a note from Key Bank, they were good to work with in general. They allowed me to defer the loan for several months last year when I was carrying two boat loans.

My new boat is financed by SunTrust. So far so good, but not much more to report than I send a payment once a month. You'll need to have 700+ FICO score and rates are not nearly as good as a home mortgage.

I disagree with others opinions on financing a boat. I would never be able to afford a boat this nice with cash. Cruising is an important counterpoise to my hectic life, and it gets my discretionary income and forces me to be more disciplined in general with my modest salary. But here I am at anchor in Cape Lookout, NC and I'm the happiest man alive.

The interest is tax deductible. If you make a careful purchase, you'll have a valuable asset after some years for the price some spend on restaurants, booze or drugs. Next to my house, this is definitely my best investment.

Couple other tips on getting a boat loan these days: you need to show a bunch of liquidity, good credit, low balances on credit cards. They will not finance boats that are too old, might be specific to model though. You'll need a survey appraisal. In general, it is much harder to get a boat loan these days. When I got my other one in 2005 they threw the money at me; I was really astonished at how easy it was.

Good luck-

Chase
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Old 17-07-2011, 17:42   #7
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Re: Boat Loan

I'll second Key Bank, and yes a boat with the capability of being lived on certainly qualifies as a second home, and the mortgage (read loan) payments and slip rent are income deductable.
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Old 17-07-2011, 17:51   #8
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Hey advocate- I worked through Sterling Acceptance for this last loan. They made it pretty easy.

Chase
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Old 17-07-2011, 17:53   #9
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Re: Boat Loan

If you have equity in real estate you are much better off refinancing that and using the proceeds to buy the boat. You will get a much better interest rate.
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Old 17-07-2011, 18:04   #10
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Re: Boat Loan

Six years ago I went with Anchor Boat loans in Deale Maryland. They went the extra mile getting my sale closed on Dec 23 so I could pick the boat up Dec 26. They also had the best interest rate at the time.
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