What type of loan for boat?

I've been talking with the wife on the type of boat that we would like to eventually buy for the two of us and the kid on the way. We have decided on size/model/type - which was a lot easier than I thought. In this case I was the one looking at a more cost appropriate model - whereas my wife wanted the Lund Pro-V GL because it was sparkly.

Anyways, I do plan on taking out a loan for my boat purchase. It is going to be awhile before I purchase a boat, but I like doing as much research as possible before getting into a big purchase like this. My question to you on these forums is what type of loan do you have and would you recommend it? Are there special incentives worth pursuing at boat shows? I've glanced at a few options and just want to know opinions on them.

First option is a boat loan through anyone who offers it. I saw loans for generally about 10 years at a percentage that goes up to 8% in some cases. That's a good chunk of money to pay in interest alone - this was my least favorite.

Second option is a home equity loan. I have enough equity built up in my house to get a loan (if approved, of course) at a substantially lower rate of nearly 3-4%. Has anyone else gone with this path? If so, would you recommend it - if not, what deterred you? Would anyone highly advise against this?

Third option, which I'm not sure if it is the same as the fist, is a second mortgage. The same reasoning as the second option, lower rate. Same questions from second option. Has any done this? Advise this? Do not advise it?

I am 26, credit near 810-820 last time I checked, if that helps with guiding me on an option that I listed, or something that I didn't list.

I am not hurting for a boat. I don't need one. I want one. That being said, I can wait until the right opportunity comes. I just want to know what is out there. I looked at multiple options based on the interest rates because why wouldn't I try an save interest over the life of the loan if at all possible?

Thanks for any help on this. Like I said, I like to be as informed as possible before taking on something like this.

You can't die with your money.  Buy a boat and whether you take out a loan or pay in cash, who really cares other than you?  Enjoy life and spend as much time as you can on the water and in the woods as you can. Life is short enough, make the most of it. I've had over 8 boats and I'm going on number 9.  Some were bought with cash and some I took a loan out on.  I've never regretted one of them!  Find a way to use it as much as possible by fishing rivers while they're still open in the winter, get out on Lake Michigan, etc.  There's lots of ways to extend your season when others are putting their boats in storage.  I figure I'm paying for this, I'm going to use it.  

18 years ago the wife and I decided to buy a brand new Crestliner. At the time we wasn’t sure how we was going to afford it. She didn’t work as my two kids was growing up. They was 10 and 5 at the time. I worked in the construction trades for a good company that keep guys going year round. I did tons of side jobs back then to make extra money.

We financed the boat for ten years at the time to keep payments somewhat lower. It probably wasn’t the smartest decision at the time but defiantly don’t have any regrets. 

My kids today still talk about all the good times we’ve had. We still get out when we get the chance. Ironically my daughter is the one who would fish with me the most.Boat is 18 years old and a little beat up but still runs like a top. Never even had to chock the Yamaha to get started.My pipe dream is a new Tyee. My decision is do I retire at 62 with a 20+ year Crestliner or do I work to 65 with a new Tyee. ($80 k) if I’m lucky.

Buy the boat…. Life is way to short.

Peace and Good Fishing!!

lar      

My financial guy.. and,  years ago Dave Ramsey stated its not a good idea to leverage your biggest asset against a "want ".    90% of the time it probably wouldn't be a problem, but it would suck if it did. Listen to your gut I guess.

While I own my own we bought in 2012 I keep thinking of what my boss told me back in the 1980’s LOL, I was complaining about the lack of time he provided me to use the boat I had then and his response to me was “ The only good thing about a boat is when you buy it and when you sell it”. his comment didn’t make me happy then but I amusingly think about it when I walk by my Crestliner in the garage on my way to the golf course, or on Friday nights when I go to a local bar grill for $11.00 bluegills.......Still a boat is a necessity so just get one and the dealer will help you get good financing.......

$170/month?  How many years will you be making payments?

I just bought a new Lund Fury and went through my bank and got a good APR. I financed 15k and the payment is 170 a month. Don’t take a HELOC for something like a boat.

Tim

Should be able to get a collateral loan for 1.99% for a new boat. Good for three year loan. As the time frame of loan goes up, so does the interest rate

I took equity out of my home to buy a boat was not a bad idea at the time.. I was at 2.75% on my mortgage at the time..Fast forward 10years my house would have been paid off a few years sooner... Have you considered looking at a used boat? New boat prices are crazy right now.. I went used boat and I have had it 23 years now..   The Question I would have to ask do you want a 8 to 10 year loan? Remember boat stands for bust out another thousand..

Banks are required to report any transaction over 10k as part of the bank secrecy act / patriot act…

Goal is to prevent funding terrorist and money laundering.

Big Brother has commenced to watching everyone ....

I went through a credit union and it worked out great for me . 

A loan for a boat, just answered your question. Don't need that one.

Good info Calvin lol!

Never considered the water transport loan option  :)

One other choice if you are not pressured to purchase would be to save like crazy, pay cash and no mortgage at all. 

That being said home equity works best of your loan examples. Only pay interest on actual money being used.

Second mortgage requires you to pay interest on total loan amount until loan is paid off.

Cappy

I once had about 8 grand in fishing gear and boat accessories stolen during a musky tournament in park falls years back.  Home owners covered all the fishing gear.  Boat coverage covered all the the seats and trolling motor foot pedal and everything connected to the boat itself.  Two different deductibles.  One was 250 and the other 500. Dont remember which was which anymore.  So i lost 750 rather than 8 grand and my premiums never went up.  May have gotten lucky. lol