Small Boat Loan
03-29-2012, 07:59 AM
#11
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Another option but has higher rates is personal loans, not saying I am reccomending this but there is no collaterol attached to it and the loans are easier to get. If you plan on paying it off quickly they arent bad ideas.
03-29-2012, 08:02 AM
#12
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Not true. Some 401K programs have built in loan capabilities, where you pay yourself back, plus interest. It all depends on the administration of the 401K program. Internally managed programs often do not have this. Externally managed programs often do.
It's a complicated question to find out if it's right for you, as you have to weigh what interest you are required to pay, if you left your money in--would it outperform the interest you would be paying yourself, and what other options you have as they compare to the 401k loan. Common terms are 5% up to 10 years, and up to a 30 years term loan if it will be a "2nd mortgage"/down payment to qualify you for a primary residence mortgage. A friend borrowed for $5K for 2 years recently, and that plan has a prime interest rate attached.
If you withdraw money out of your 401K, period; yes, you may be liable for a penalty, pending your age.
I too agree with checking with your Credit Union.
Heck, my insurance company (State Farm) is also a bank now; offering competitive rates on all types of loans. They are always vying for my banking business, but it's a little weird when my agent asks me each time I see him: "when are you buying a new car?"
It's a complicated question to find out if it's right for you, as you have to weigh what interest you are required to pay, if you left your money in--would it outperform the interest you would be paying yourself, and what other options you have as they compare to the 401k loan. Common terms are 5% up to 10 years, and up to a 30 years term loan if it will be a "2nd mortgage"/down payment to qualify you for a primary residence mortgage. A friend borrowed for $5K for 2 years recently, and that plan has a prime interest rate attached.
If you withdraw money out of your 401K, period; yes, you may be liable for a penalty, pending your age.
I too agree with checking with your Credit Union.
Heck, my insurance company (State Farm) is also a bank now; offering competitive rates on all types of loans. They are always vying for my banking business, but it's a little weird when my agent asks me each time I see him: "when are you buying a new car?"
People stay away from 401k's and HELOCs to buy boats. If you dont truely have the money to afford a boat dont get into it. To many people on here messing with their future or life just to have a boat.
04-07-2012, 05:55 AM
#13
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It is a total pain in azz to get a loan for anything under 25k and older than 10 years old.
I called every bank I could think of and searched online , nobody would loan under 25k !!!
My bank which my family has used and I used for the past 20+ years would not do a loan for under 25k and I deal with the assistant vice president
She told me she tried every which way , and the only conventional way was to do a unsecured loan @ 11% ..
Only wanted 9k , so F-it , I used a 0% check Chase keeps sending me, figure those fukers been getting free money from the Fed's for free , why not me , I had to pay a 2% fee to use the check, so i'm in for $180 fee , 12 months ZERO interest ,and if for some reason I can't pay that off in 12 months , I can transfer the remaining balance to my Visa with my bank @ 6.25%
Sad part is I paid 9k for the boat , it surveyed "as is for" 14.5k
Only draw back is that the revolving vs secured issue , but not concerned as my score is high 780's so if it knocks off 20 point's credit score still in the "excellent " range..
I called every bank I could think of and searched online , nobody would loan under 25k !!!
My bank which my family has used and I used for the past 20+ years would not do a loan for under 25k and I deal with the assistant vice president
She told me she tried every which way , and the only conventional way was to do a unsecured loan @ 11% ..
Only wanted 9k , so F-it , I used a 0% check Chase keeps sending me, figure those fukers been getting free money from the Fed's for free , why not me , I had to pay a 2% fee to use the check, so i'm in for $180 fee , 12 months ZERO interest ,and if for some reason I can't pay that off in 12 months , I can transfer the remaining balance to my Visa with my bank @ 6.25%
Sad part is I paid 9k for the boat , it surveyed "as is for" 14.5k
Only draw back is that the revolving vs secured issue , but not concerned as my score is high 780's so if it knocks off 20 point's credit score still in the "excellent " range..
