RV Financing Terms
Right now in the RV financing industry, the most common financing terms are anywhere from 8 years to 20 years in length. The length of the financing depends on many factors, but the most influential factors are the age of the RV and the amount of the loan. With this said, most RV buyers opt for something around the 15 year range. This may be the perfect choice for some, but there are reasons that you might want to consider a 20-year loan (240 months) instead. The RVs that qualify for this type of loan are generally less than 5 years old and have a financing amount of $100,000 or more. The reason that a 20 year loan can be beneficial is that the monthly payments will be lower and with no pre-payment penalty, you can choose to make larger payments and pay off the loan sooner, but also have the option of making the minimum payment when your budget is a little tight.
General Guidelines for RV Financing Terms:
--RVs under $100,000 or more than 5 years old will have a quarter percent
increase on their interest rate.
-A twenty-five percent down payment is usually required on 20 year terms (240 months.)
-An RV loan for $100,000 or more may receive a 20 year loan if desired.
-A 15 year term (18 months) is usually the maximum for a $25,000-$99,999 RV loan.
-10 year or 120 months is standard for an RV loan of $15,000 to $24,999.
-You can receive 8 year (96 months) financing on a loan of $10,000-$14,999.
-No payments for 90 days on loans greater than $10,000.
-Any loan approval or rate commitment is valid for 90 days after the loan application is approved.
-$125 is the minimum monthly payment on any RV loan.
-AK, AL, AR, HI, LA, MS, WV residents cannot receive recreational vehicle loans at this time.
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