Don’t let a new boat capsize your budget
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Boating is something that appeals to families of all shapes and sizes. In the quest for a work-life balance, it is important to take time and enjoy life’s little moments. With a wide variety of lakes and rivers in the Inland Northwest for boating, it is important to chart a sensible course for your money when considering a boat.
Before you drop anchor on that boat loan, ask the following:
What am I using the boat for?
Whether you are looking for a boat to explore a new fishing hole or to splash around with the family at the lake, knowing what you are going to use the boat for is the first step. How often will you be using it? How many people will be joining you? Maybe you decide that you want some water toys, but a boat may be a big step.
How much can I afford for a boat loan?
Numerica provides tools and solutions to help our members live well. We try to keep our terms flexible with longer repayment options to keep payments low and maintain affordability.
One of things that lenders look at before approving a loan is your capacity, or debt-to-income ratio. A good rule of thumb is for total monthly commitments (including the new loan amount) to be equal or less than 55% of your monthly income.
Just like with any loan, the more you are able to put down, the lower the principle or the amount you are borrowing. This helps to create an affordable, lower monthly payment.
Crunch some numbers by using a payment calculator. This is a great way to see a ballpark of what your payments might be as well as get an idea on the loan amount.
Numerica offers flexible financing to find a loan that fits your needs. If you already have a loan or an account with Numerica, you may qualify for a relationship discount that can reduce your rate up to 0.75%.
Now through June 30, 2017, Numerica is offering 90 days without payments for a boat or RV loan.
What do lenders look at before giving a loan?
There are five main considerations lenders look at before giving a loan: credit score, capacity, capital, collateral and conditions.
Numerica offers a flexible lending program that customizes loans to members’ needs. We want to help our members live well and understand that each member’s financial situation is different. Numerica customizes loan terms to help turn dreams into realities.
What other costs should I consider for my boat?
One of the most common mistakes people make is not understanding the cost to upkeep a boat. This would include winterization, insurance, fuel, general upkeep, and unexpected repairs.
Life is full of twists and turns. Planning for them can save you a lot of stress. Consider some extra coverage for your boat loan. GAP covers the difference between the actual cash value of the boat and the balance still owed. Essentially, it is the difference between what the insurance company pays in the event your boat is stolen or involved in an accident and the balance of your loan. For an 84-month, $50,000 GAP coverage, you are looking at an additional $5 per month that can be added to the loan. Or, to keep your affordable payment, Numerica can extend the term. While not required, this add-on is highly recommended when you get your loan and can save some stress in the case of an accident.
How do I get a boat loan?
Getting a boat loan is very similar to purchasing a car. Numerica has relationships with many dealerships around town. Just make sure to let them know you are interested in financing through Numerica if you haven’t already been approved for your loan at a branch.