If you have always wanted to own your own yacht, new opportunities in financing can make your dream possible. There are several options available when you pursue yacht financing in Deerfield Beach, FL, so there’s no reason to think that you can’t attain this personal goal. Here are a few facts you should know about financing a boat purchase.
Secured or Unsecured?
There are two types of yacht loans from which you can choose. An unsecured loan typically involves a smaller loan that’s repaid over a shorter period of time. The interest rate is usually higher as well since there is no collateral. A secured loan involves using the boat you’re purchasing as collateral. This means defaulting on the loan involves having the boat repossessed, but it also gives you an opportunity to obtain a larger loan that’s paid back over a longer period of time.
How to Determine How Much Yacht You Can Afford
Before you apply for a loan, you should assess your household budget. You don’t want to end up with loan payments that far exceed what you can realistically pay each month. Don’t forget you’ll also need to account for insurance, fuel, and maintenance care for your boat. In total, financial experts recommend keeping payments at or below 20% of your monthly income.
Your Credit Score Matters
Just as is the case with buying a home, qualifying for a yacht loan will depend on your credit rating. Before applying for yacht financing in Deerfield Beach, FL, review your credit reports and file petitions to remove any discrepancies. You should also plan ahead by doing what you can to boost your score as much as possible. A higher credit score can help you get better terms in addition to helping you get approved much faster.
If you want to see if you qualify for a yacht loan, contact Elite Financial International by visiting them at yachtloans.com.
