Who doesn’t want to voyage the sea and enjoy the breathtaking view of the ocean? Overseeing the cities and just appreciating life is a pleasure we all want to take every once in a while. Because, why not? We all deserve a break from land.
Looking for a yacht to experience these perks? You need a yacht lending institution to find the best offers available.
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Where to Acquire A Yacht Loan?
You can find a lot of institutions offering yacht loans and each will vary how long you need to finance a yacht.
- Marine Brokers – if you are looking for a pre-owned yacht, this is the perfect option for you. The broker introduces you to a seller or a financing company and helps you find the right yacht that fits your liking. Remember that the broker does not represent the seller, but represents you.
- Dealer Financing – this is the easiest way to acquire a yacht as you can purchase a yacht at the same time and place that you have inquired. The drawback is that if you are not consistent with your monthly payment, you will be paying a high interest rate. So, make sure you pay on time.
- Banks, Credit Unions, Online Lenders- Among these three, most of them take place with a lender. You can also find reasonable offers with credit unions, and loans from banks are also an option if you want a new vessel.
- Shop Around – if you are looking for a used yacht, you need to make sure that the price you are going to pay is worth its value. You don’t want to buy a faulty yacht and pay hundreds of thousands of dollars, right? This requires knowledge about yachts and perseverance to find a good deal.
Among these institutions, what matters to them most is your financial situation. Other institutions help you acquire a loan even with a low credit score but they tend to give a higher interest rate to you. Make sure you find the right people for marine lending.
How Long Until I Can I Call It ‘Mine’?
Do you want that latest and expensive model of a brand new vessel? If so, it may take longer to finance your yacht. We need to consider the price because it greatly depends on your monthly payment. If you do pay a higher down payment, that could be an option if you want a lower interest and shorter time of financing. Typically, a yacht loan can last up to 20 years but can be short as 24 months or 2 years.
It’s also not bad to choose a used yacht if you prefer a short-term financing option. You can still refit the yacht to your own liking but don’t expect the equipment to be cheap. Since it’s a yacht, it has high maintenance costs.
Items your lender will require for financing
- Completed, signed and dated Personal Financial Statement, “PFS” (not older than six months).
- Bank and Brokerage Statements supporting liquid assets as disclosed on the PFS.
- Two most recent Personal Tax Returns for each applicant (include all schedules: A through E and all K-1’s).
- Two most recent Paystubs (if applicable).
- Include most recent W2(s) where the current year personal tax return has yet to be filed.
- Copy of Purchase Agreement/Bill of Sale/Brokerage Agreement.
What To Expect?
When acquiring a yacht loan, you are expected to pay interest rates. It can be as low as 4.29% APR and go up to 11.89% APR. Your credit score and down payment will affect your interest rate.
JetLoan Capital offers information available on the Yacht Financing Process and a Loan Calculator to use.
It’s not hard to get a yacht loan. Again, it can depend on your credit score to acquire the lowest yacht loan rates. Make sure you inquire with marine financing experts to help you with a smooth sailing process in yacht lending.