What's your
finance rate and financing costs?
You have spent allot of effort on deciding to purchase one of our many
brands like the Big Horn RV, Cougar RV, Cyclone toy hauler, Sundance fifth
wheel or Wildwood travel trailers and have decided to finance it. What you
need to know is that its time to pay even closer attention. Its important to
find a great interest rate but a common mistake that is made when you shop
for the lowest finance rates and forget to ask if its simple interest.
Simple interest is calculated on the unpaid principal balance, the finance
rate and the days since the last payment. There is a certain amount of the
payment that is applied to the interest and the remaining is applied to the
principal balance.
The next things you need to know are
there any finance processing fees or early prepayment penalties. Some
companies charge these hidden fees and that low APR that you think you have
actually been promised can actually be recalculated to as much as half of a
percent to a full one percent higher because of these fees and the interest
they accrue over the term of the loan. The lowest simple interest finance
rate and term can save you thousands.
What's the term or
duration of the loan?
It’s important to understand that the reason to finance with a dealer is
because dealers are setup with lending institutions who want to finance RV's
and offer better terms than most banks or Credit Unions. It’s important to
have terms to make the payment affordable. What's more important that you
never hear about is, by having a lower payment your debt to income ratio
will be lower which in tern means your credit score will be higher. This is
important because when you apply for another loan this can affect the
interest rate you pay. Last but not least unfortunate circumstances can
happen to anyone and being payment strapped can make everything fall apart
during troubled times. Keeping it affordable means you will keep it fun for
the family and not a burden. You've worked hard to keep a credit rating so
don't ruin it.
Time for the
secret to saving thousands!
Learn how to work with your term and interest rate to save thousands.
Finance your RV for the longest term available 12, 15 or even 20 years. This
will keep your payment low and affordable. Make your payment and pay extra
to the principal. This will cut the term dramatically. The more you pay to
the principal will reduce the effective interest you pay on the loan by as
much as fifty percent or even more. Wait till you try out my RV calculator.
Example:
Amount Financed: $27,000
Interest Rate: 7.75%
Term in Years: 15 years
Payment Amount: $254.14
If you add $75.00 to your payment look what you can save in time and money.
Reduced Term in Years: 9.9 years
Interest Savings: $7166.33
What happens if you add $150.00 to your monthly payment.
Reduced Term in Years: 7.4 years
Interest Savings: $10,294.92
Imagine paying off your loan in half the time and look at the savings. Your
effective interest paid is 30 to 40 percent less in the example above.
How about a tax
break?
Interest paid on your new Bighorn fifth wheel, Cougar trailer, Cyclone toy
hauler fifth wheel, Fuzion toy hauler, Montana trailers or any other brand
of RV can be tax deductible if you don't own a second home. Just like your
primary home the interest is tax deductible.
To qualify, the Internal Revenue Service requires that:
1.The RV must be used as security for the loan.
2. The RV must have sleeping, cooking, bathroom facilities and be self
contained.
Most RV types - including motor homes, fifth wheels, travel trailers, toy
haulers, hybrid trailers and popup campers meet the criteria necessary as
defined by the IRS.
For more information on tax deductibility contact the IRS or your tax
advisor.
Why would you take
a chance with any lender who can't take the time to really save you money?
Our process is simple with quick approvals and personalized service. My 20
years experience and true simple interest rates get you the service you
expect, and the savings you want. When I say "No Problem" it means no
hassles and no surprises.
