Financing a boat

[CNP]

Line of credit using your home as collateral should get you prime +.5 interest. That is the lowest you're going to get for interest. 20 year payback is too long.

[Okotokian]

Banks would give you a mortgage for a depreciating asset like a boat? I hadn't heard of that. I would have thought the rules would be more in line with a car loan... 5, 6, 7 years max.

Even if they will do it, doesn't seem like a wise idea to me. You will have something that soon won't be worth what you owe on it. We have seen enough people over-extend themselves and then get into trouble when the economy craters.

[schmedlap]

Originally Posted by Okotokian

Banks would give you a mortgage for a depreciating asset like a boat? I hadn't heard of that. I would have thought the rules would be more in line with a car loan... 5, 6, 7 years max.

Even if they will do it, doesn't seem like a wise idea to me. You will have something that soon won't be worth what you owe on it. We have seen enough people over-extend themselves and then get into trouble when the economy craters.

No bank is going to give a 20 year amortization on such. Depending on the precise nature of the boat being purchased, anything beyond about 7-8 years is very doubtful. In order to effect a 20 year amortization, the security would have to be a real estate conventional mortgage or secured LOC which one treats, by way of making mostly interest only payments, as such.