*Estimated APR, or Annual Percentage Rate, is the annual cost of the loan, which includes other charges and fees. Actual rate and term can vary depending on credit history, collateral type, age of collateral, loan amount, loan term, loan to value, vessel registration type (LLC/Trust), state of residency and other criteria. Rates and terms may vary and are subject to change without notice. Credit score can vary depending on the credit reporting agency. Payment example: A $76,000 loan for the purchase of a recreational use vessel for 20 years with a fixed rate of 5.49% would have an estimated APR of 5.49% and 240 payments of $522.37.
How Our Boat Loan Calculator Works
This online calculator can estimate the monthly payments you will need to make based on the loan amount, interest rate, and loan term you select. By inputting these figures into the calculator, you can get an accurate estimate of your boat loan payments, which can help you plan your budget and determine how much boat you can afford. By taking advantage of this tool, you can make an informed decision about your yacht loan and ensure that you can comfortably afford your monthly payments.
What is the average boat loan interest rate?
Boat loan interest rates can vary widely depending on a variety of factors such as the borrower's credit history, the amount of the loan, the loan term, and the type and age of the boat being purchased. Current boat loan interest rates for well qualified borrowers start around 6.74% and go up from there.
How Boat Loans Work
Trident Funding is the preferred partner of YachtWorld for boat loans. They collaborate with leading marine lenders to provide you with the best yacht financing options that suit your lifestyle and financial plan. If you’re ready to make an investment in a yacht, here’s how yacht loans work:
1
Estimate Your Boat Loan Payment:
Are you planning to purchase a new or used yacht and need to determine your affordability? Utilize the boat loan calculator from YachtWorld to assess how much yacht you can afford. Simply enter the desired loan amount and loan terms to estimate your monthly payments or provide your preferred monthly payment to obtain the total loan amount you can afford.
2
Apply For a Loan:
Now that you are ready to proceed with your yacht purchase, it's time to submit your yacht loan application! The process is simple - provide some information regarding the type of yacht you are interested in purchasing, along with relevant financial details, and we will connect you with a suitable marine lender. Our goal is to ensure that you secure the right yacht loan that meets your financial requirements and helps you make your dream of yacht ownership a reality.
3
Get On the Water:
Once you have successfully submitted your yacht loan application, the experienced team of loan officers at Trident Funding will take over. They will promptly begin reviewing your application and will provide a loan decision within 24-48 hours, or may request additional information if necessary. Once your yacht loan is approved and funded, you are one step closer to cruising on the open waters!
Frequently Asked Questions
How much boat can I afford?
Affordability will be based on things like your income, credit score, debt-to-income ratio, purchase price of the boat, loan term, and interest rate. When you see the estimated yacht loan monthly payment, remember that it doesn’t include insurance, marina fees, docking or storage fees, maintenance, repairs, fuel, license, or crew costs. So, make sure there is room in your budget to allow for these extra expenses.
What is the minimum credit score for a boat loan?
There is no definitive minimum credit score required, but there are some banks that will consider applicants with scores in the 600 or 640 range. You will typically need a credit score of at least 600 to get approved for a boat loan. The higher your credit score, the lower your interest rate will be, which will save you money over the term of the loan. Additional credit limitations and requirements will typically be required for scores under 700. Use our boat loan calculator above to determine your estimated monthly payment based on your FICO credit score.
Some tips to raise your credit score include:
Make on-time payments to your creditors
Ask for credit limit increases on your credit cards but don’t use the additional credit
Pay down your credit card balances so they’re 25% or lower
Regularly check your credit report and dispute any errors
What is the average boat payment?
Every borrower is different and their credit score and income will affect the boat payment. The interest rate, the boat term, and the purchase price of the boat will also affect the amount of the monthly payment. If you want to roughly estimate what your boat payment will be, calculate 1 to 1.5% of the value of the boat. For example, if you buy a boat worth $100,000, expect to pay between $1,000 and $1,500 per month. Keep in mind, this is just a rough estimate, and you can get a better idea of your monthly payment, by using a boat loan calculator.
How long does it take to get approved for a loan?
After you submit your application (online is fastest!) and your Trident Funding loan officer has all the required financial documents, they usually have a decision in 24-48 hours, often less.
