mahal
Guru
- Joined
- May 26, 2010
- Messages
- 651
I agree that if you have a hard time financing the boat, get an equity loan on your home if you can. The interest rate will likely be lower and much less of a hassle to get than a boat loan.
Just because one finances a boat doesn't necessarily mean that that person doesn't have the funds to pay for the boat in full. Sometimes our investments are earning a higher interest rate than the going loan rates, which makes it unwise to use such money if you can borrow for cheap. Also when you are under a certain age (62?), tapping into your money that is in some type of retirement savings like IRA will cost you a 10% withdrawal penalty. Yet another reason to borrow.
Just because one finances a boat doesn't necessarily mean that that person doesn't have the funds to pay for the boat in full. Sometimes our investments are earning a higher interest rate than the going loan rates, which makes it unwise to use such money if you can borrow for cheap. Also when you are under a certain age (62?), tapping into your money that is in some type of retirement savings like IRA will cost you a 10% withdrawal penalty. Yet another reason to borrow.