Boat Loan Types

May 15, 2012 by  Filed under: Loans 

Boat loans are obtainable and can be acquired with simplicity. Two types of loans are unsecured and secured boat loans. They are the basic types of loans for all kinds of boats.

Secured loans are those that are held or “secured” against a kind of collateral such as a boat, horse trailer, RV or other valuable property from the borrowers. These kinds of loans are readily available at a much lower interest rate with longer payment terms.

Unsecured boat loans will require no collateral to be put down on one hand. These loans will not require you to use your boat, RV, horse trailer or other valuable asset to ensure your loan. Unsecured loans are generally at a higher interest rate but the borrowers do not have to put any of their other assets as collateral in to be able to obtain the boat loan.One thing to think about is that people with bad credit may also be eligible in getting unsecured loans.

The Internet has transformed the whole finance industry with the abundance of online lenders. Applying for boat loans on the internet is very simple and safe and you can get an approval relatively fast.

Before you submit any of your financial information on the internet, confirm the site is a legitimate company. The following are some things to look for when trying to establish if a site is secure:

– Verify, in the address bar of your browser, that you see: The https:// in front of the domain name distinguishes the page of the website you are in is a safe page where you can enter sensitive financial data.

You should also ask if the boat loan type is a simple interest loan. Simple interest loans have payments that are due on a monthly schedule. There are no fees and penalties or higher interest rates if you prepay your loan. Simple Interest is a technique of allocating your monthly loan payments in between the interest and the principal. The sum of your payment allotted to interest is calculated based on your unpaid main balance, the interest rate on your boat loan, and the overall number of days since your last payment. The rest of your payment is credited to principal and reduces the unpaid main balance on your loan.

With pre-computed loans, the interest is due over the entire life time of the loan and is decided using a regular amortization table. Once you mark on the contracted line for this type of loan, you’re accountable to pay back principal plus the full amount of interest that will accumulate over the whole term of the loan. If you pay off or make early payments on a simple interest loan, you are not penalized, and your payments will go down. Precomputed loans actually punish you for early payments.

At Southeast Financial, we specialize in financing for motor homes, RV’s and campers, horse trailers, boats and motorcycles – nationwide. Go to today.

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