RVs or Recreation vehicles (RVs) as most people refer to them are actually home on wheels. They allow a lot of people to travel all over the world but be very comfortable at the same time. A RV purchase is a serious investment and people should understand what a RV loan is and what RV financing is so they can get the best in interest rate and loan term when making this type of long term investment.
As a consumer you should sit down and determine what
RV loan you can afford before you start looking and this can be done by using a loan calculator and entering in your interest rate and loan term. Most loan terms on RV financing will range from 60-180 month depending on the amount of money you are borrowing. Questions to ask the lender are is the loan a simple interest loan which means when you pay the loan off will you have to pay a penalty If the loan is not simple interest more than likely you will not want to take the loan because you will probable want to upgrade or trade in your unit in a couple years and you do not want to be penalized for this. Second ask if their is a fee for applying for the loan you do not want to have to pay just for submitting an application. 3rd check the lender out on the Better Business Bureau.
RV loans are based on the units value so you can if you are buying a used unit you may want to go to a website like http://www.nadaguides.com/RVs and checkout the value of the RV and see what the unit is worth. After doing this research and finding the right lender you will fill out an application and the loan officer will take the application online or by fax in most cases. After you are approved will sign the
RV loan documents and after processing the loan the lender will process the sign paperwork, review the RV loan documents to make sure the documents are correct. The whole funding process usually takes three days.
A RV loan especially for someone buying a motor home RV, camper etc.. for the first time is the best decision because it gives you the benefit of the low monthly payment so you are not tied down to a huge cost you may be subjected to if you went to your local bank that only offered you a 60 month loan term. Most lenders can get you pre-approved before you start to shop or get you approved for around the amount of money you are wanting to borrow. You can finance new or used in today's market the interest rates are so good you can get great rates on new as well and used RV loans so you can enjoy the comfort of life on the road.