Current interest rate?
 

Just wondering what's out there. My current lender wants to refi me at 6.13% Anything better out there?

They're making money at that...
you should be able to get under 6.

My wife is in the business, we don't live in O.C. anymore but still have some contacts down that way. Let me see if I can scrounge up some #'s.

what are you refi'ing ? house, boat etc...if thats a 30 year fixed rate on a refi on your home thats a good rate

to get accurate numbers, also need to know median credit score, type of mort (full doc or stated) DTI (debit to income ratio) mort amount and home value

Hey Drew....I'm a broker .....with a 720 plus tri merge score you should be closer to 5.5%...no more than 5.75%...if I can help just let me know...

Chip Cecil

Good point, boat.

Lender is stating that he can't do any better than 6.13 because it is a "high performance" boat. Credit is 730 +.

E-Mail Dave P from Essex Credit, he is always on here and is one of the best on getting a loan at a low rate.

[email protected]

Or call Loan Ranger here on the boards. the rate for the Formula that i am getting is under 6 and i don't think my credit score is as good as yours.

I may have missed that....the age of the boat and many other factors will go into that....but with a 730 score you will be in the top tier as far as rate goes....

ya dave handled mine it was painless

All depends on your credit score, boat make, age of boat, HP of engines & your Debt to Income ratio.

The banks that will finance HP are dwindling quickly. Lakeland Bank here in NJ just pulled the plug on Marine Financing. They will now only finance only branch customers.

As far as national banks, very limited. Twin 525hp or less is relatively easy with a good score.

Over 525hp.........tougher
Over 800hp.........you need to be GOLDEN

As for rates today for 10yrs old or less:

5.50% fixed for 3yrs (525hp or less) over $100k
5.75% fixed 15 or 20yrs (525hp or less) over $100k

These rates are for GREAT credit and hp under twin 525hp

CHip - ya got an email address you can give me? I'm wanting to buy a place on Cumberland. Got some questions on a loan.

This is pretty much on par with what I found....
The HP can be a killer of a deal.

[email protected] to help anyway i can....

If you can remind yourself to keep an eye on rates the 1 month LIBOR rate is the best right now.

Rate is 4.95% but the rate adjusts every month. This is a good program for at least the next 18-24 months. BUT!!!!!!!! You have to be disciplined enough to see when rates start to climb to refi into a FIXED rate.

Unlike all the folks who are getting their homes forclosed on now who did not understand what they were getting into.

What always pisses me off about some lenders is..:angry-smiley-055:

Collateral doen't repay loans people do. WHo cares if it has 900's or 500's. Do they finance a v-6 mustang but not a GT500 model? The whole reason for the sub prime mess was a bunch of loans to poeple with poor credit, no reserves and Loan to Values through the roof! Yea that was about a 500 billion dollar mistake. Gee how's that collateral liquidation working out for you guys?

Wonder if National City was brought down by thier boat lending or their stupid foray into subprime.

If you know the value of the boat and discount it properly you're going to have the same loss when you get it back regardless. I've never made a loan, sans a CD or other cash value, based on collateral.

But its their money and as usual the banking industry is swinging way to the conservative side. Then in a year or so, stock values will still be in the tank and boards and share holders will be screaming about earnings and we'll start the cycle all over again.

Rant off:angry-smiley-055:

Without having knowledge on the subject I would say that your summation is like not being able to hit the side of a barn with a shotgun :D

Is there news on this? What happened to National City? Are they out of the boat loan business?


Edit...
All I can find is this on Wikipedia: "2007: National City announces that their Wholesale Mortgage Division will cease operations effective December 31, 2007 in the face of record foreclosures. Employees were notified via email and conference call from Buck Bibb, head of National City Mortgage."

I've got a refinance question. Most lenders load up the interest in the early years of the loan, the later you are on the loan the more principle your paying in. So when you refinance does that mean you get a whole new loan, which loads up the interest again? What would be the point in refinancing if you've already paid all the interest on your loan and your payments are all going to principle.

I don't know if National City are making boat loans or not, my point was they aren't looking for someone to buy them because they made too many boat loans on 900hp boats.

It's too bad my 1st boat was financed through them years ago and maybe even my second.

On the up side for them Wells Fargo is rumored to be a buyer and that will not be a negative for the customers.

Interest isn't "loaded" at the front of the loan, you pay more interest in the beginning because your loan balance is higher in the beginning and smaller as you go farther into repayment.

If you refi you only pay interest on your current balance, only hopefully at a lower rate.

Example.
$100,000 boat loan at 6% you accure $16.44 in interest per day at that balance. So if you have a 240 month loan and a payment of $712 a month, that first month $493 goes to pay interest ont he $100k and $219 goes to principal.

When you pay your loan down to say $50,000 now interest only is accruning at $8.22 a day and when you make your payment a lot more is going to principal out of it than to interest. or out of that same $712 , $246 goes to pay a months interest and $465 goes to principal.

Now if you refi that $50,000 at 5% only $208 goes to interest, so a refi is saving you money. Assuming you doen't refi that $50K for another 20 years but keep the same term as what remained on your old loan

Well put Von.I am a broker in Somerset Ky....If I can help in anyway just jive me a call 229-669-5380

Chip Cecil

Thanks Chip but I already have 4.75% from a local bank. Only for 5 years but if history is any indication that will be about 3 1/2 years longer than I actually own the boat!!!:D

Actually, I'm probably a lot closer to William Tell than what you are giving me credit for! :D

I don't know what is happening with them,(saw something on the news that they were trying to sell themselves), BUT, we, (HQ and I) decided to pay off our National City boat loan last week:D Ahhh, what a nice feeling, no more boat payments, we just waiting on the title and all the paperwork now.
Dean

Maybe between Stevie Wonder with a shotgun and William Tell :p

National City pulled the plug on Marine Financing almost 1 year ago....maybe a little longer.

As for High HP.........the higher the HP the more maintenence. Most (not all) but MOST repos that occur on 800hp, 1000hp, 1200hp boats, motors are JUNK by the time they get repo'd.

And yes - there are clients that HAD 780. 760, 740 credit scores but for one reason or another have fallen on hard times. And when they fall on hard times, the boat is the first thing that doesn't get paid.

A guys gets a 38 Top Gun Repo'd with 525's that never had the oil changed..........not really a big deal.

A Skater that has Twin 1000's and one is grenaded...GOOD LUCK trying to sell it for what is owed on it.

That is why most banks do not like BIG HP performance boats.

[QUOTE=DaveP;2521903]Maybe between Stevie Wonder with a shotgun and William Tell :p

National City pulled the plug on Marine Financing almost 1 year ago....maybe a little longer.


Dave P,
It's funny you say that, when we went into the local National City branch here on Merritt Island last week to pay off our boat loan, they were advertising RV/Boat loans.:eek: I even asked to see the rates, and they were ~.25-.5 higher than our loan was.
Hope this doesn't add to the confusion.
Dean

As for High HP.........the higher the HP the more maintenance. Most (not all) but MOST repos that occur on 800hp, 1000hp, 1200hp boats, motors are JUNK by the time they get repo'd.


I agree whole heartedly!

No different however then your average Over the Road truck, we never repoed one with a fresh Cat in it. Never foreclosed on a house that had a fresh remodel.

Heck my first job with a finance company we financed and at times repoed water beds, want to know the liquidation value of that? But that's why we charged 31% APR (yes it was legal). Income offset losses. Appropriate dealer reserves for those bogus applications helped too. Our average ROE was 22-25%

And yes - there are clients that HAD 780. 760, 740 credit scores but for one reason or another have fallen on hard times. And when they fall on hard times, the boat is the first thing that doesn't get paid.

What's that got to do with the size of engines in the boat?

Answer None!

Didn't matter if they bought a Bayliner or a Skater the model risk of default is exactly the same.

Credit scores are a valuable tool for a bank that wants to play statistics rather than know their customers. Sounds like the statistics didn't play out in their favor.

Funny that they are rewriting the models, seems maybe they aren't as accurate statistically as some had been led to believe?

A guys gets a 38 Top Gun Repo'd with 525's that never had the oil changed..........not really a big deal.

A Skater that has Twin 1000's and one is grenaded...GOOD LUCK trying to sell it for what is owed on it.

Well that isn't apples to apples now is it? But sounds like we are getting to the heart of the problem!

Did I ever say they should have the same Loan to Values assigned to them?? No I said "properly value the discounted collateral" or the same interest rates?

Lending is about mitigating risk, not eliminating it.

Sounds to me like whomever wrote the loan policy didn't take into account the higher level of risk associated with that type of collateral.

Same reason commercial and residential real estate have different regulatory loan to values, there's more risk with one. (current real estate market excluded).

Hey how about this for boats with XXX HP we require 30-40% or even 50% down instead of 10% and we require a rate of 6% instead of 5%? XX months of cash reserves, dig into the balance sheet a bit and understand what's there. Call their local banker see what he or she has to say. But thats too old school, I'm starting to feel like T2x of finance!

But then again I can't find the barn.

"Very superstitious writing on the wall" I prefer the Stevie Ray Vaugh version.

:party-smiley-004:

PS I appoligize for hijacking this thread and vow not to take it any farther off course. Back to regular programing...Apache anyone??

Who should I contact to get 5%?

30 year fixed rates up .25% today....

What % down do you need? Does having a credit score in the mid to low 700's sway the % down as well?

you can put 10% down and still get a great rate...I still have a few lenders that will do 100% but rate may be a bit higher but not more than .25% difference...

Pulling the trigger on 6.1% Do I hear 5.5%

rates up again today....crap I should have locked more people in earlier...