RV Loans

An RV is a sightseer’s chariot, offering you comfort and luxury for thousands of miles of open road. Whatever your reason may be, owning an RV can be a life changing experience. There are many ways to finance this dream, but key items you need to be aware of are the money you need to put down, interest rates, and the terms of the loan. 

Many lenders will want a borrower to put 10 - 20% down payment towards the RV. However, there are some lenders that will finance RV loans with 5% down or less. Go with the larger down payment if it’s in your budget — this will lower your monthly payments and help you pay the costs of the RV off quicker.

You can choose either a fixed or adjustable interest rate. Fixed rates are good in that they never increase, letting you know exactly how much the total loan will cost you. The introductory interest rate for adjustable rate loans will keep the payment lower initially for the loan, but can shoot up in a very short period of time.

Determine how long you want to pay for the RV — the longer the length of the note, the longer it will take you to acquire equity. This can get complicated depending on your cash situation, your income and how long you plan to keep your RV. The term of the loan usually ranges between 5 to 25 years for most vehicles.

Remember to always contact a couple of lenders when shopping for RV loans — the interest rate and fees can vary greatly by lender. Contacting more than one lender ensures that you are getting a competitive loan package, and prevents you from paying thousands of extra dollars in interest charges.