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Estimate Your Monthly Boat Payments – Forbes Advisor


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A boat loan can help finance the cost of a boat, which typically ranges between $20,000 and $75,000, depending on the type of boat. To figure out how much boat you can afford, you’ll need to estimate your monthly payments, while factoring in annual percentage rates (APRs), so you know exactly how much it will cost you. This boat loan calculator can help you do that.

How to use this boat loan calculator

To use this boat loan calculator, enter the amount you will need to borrow, the interest rate and the term. Then click submit to see your estimated monthly payment and total interest paid over the life of the loan.

Use the Boat Payment Calculator to determine if you can afford the loan you are considering or if you may need to find a less expensive option.

boat loan calculator

Secured or unsecured boat loans

Boat loans are usually offered by banks, credit unions and online lenders. The institution you use probably determines the type of boat loan you will get. For example, banks and credit unions usually offer secured loans, while online lenders offer unsecured loans.

Secured loans require collateral – something of value to secure the loan. In this case, the collateral is the boat you are financing, which the lender can repossess if you fail to meet your payment obligations or are in default. However, because collateral reduces the risk you pose, the lender usually offers less stringent qualification requirements and lower interest rates. This means that secured loans may be a better option for people with lower credit scores (below 670).

Unsecured loans, on the other hand, do not require collateral, meaning you do not need to use the boat or personal property to secure the loan. Online lenders who offer unsecured personal loans generally require minimum credit scores of 670; however, we recommend a score of at least 720 to ensure the most favorable terms. Since lenders take on more risk due to the lack of collateral, you may find that unsecured loans generally have higher interest rates.

Related: Secured Vs. Unsecured Personal Loans: Which Are Better?

How to get a boat loan in 5 steps

Although the process varies by lender, follow these general steps to get a boat loan:

  • Check your credit score. Check your credit score for free through your credit card issuer or another website that offers free scores. This gives you an idea of ​​your credit rating and your chances of getting a boat loan. Once you know your score, compare it with the credit score requirements of your desired lender.
  • If necessary, take steps to improve your credit score. If your score is damaged or if you want to increase it to benefit from the most favorable conditions, take the time to improve your score before applying, for example by reducing your use of credit or paying off unpaid debts.
  • Determine how much you need to borrow. Next, calculate how much money you need to borrow to buy the desired boat. However, only borrow what you need, as you will pay interest on the entire loan amount.
  • Shop around for the best terms and interest rates. Many lenders will allow you to prequalify before applying, allowing you to see the terms you would receive with a simple credit application. Prequalifying lets you search for the best rates without hurting your credit score.
  • Submit your application. After finding a lender who offers you the best terms for the boat you want to finance, submit your application online or in person. The processing time for your loan depends on the lender.

Other Forbes Advisor Loan Calculators

In addition to this boat loan calculator, there are other Forbes Advisor loan calculators available to you, including:

Compare personal loan rates in 2 minutes

Forbes Advisor has partnered with Credible to help you find the best rates.

Frequently Asked Questions (FAQ)

Can I use a mortgage to finance a boat?

If a secured or unsecured personal loan isn’t right for you, consider a home equity loan as a method of boat financing. Home equity loans are secured loans that use the equity in your home as collateral, meaning the lender can foreclose on your home if you don’t repay or fail to repay. You can borrow up to 85% of the equity in your home and pay it back in monthly installments over a period of five to 30 years.

What is the duration of a typical boat loan?

Boat loans typically range from one year to 20 years, depending on the type of institution you are applying to. For example, while online lenders typically offer unsecured personal loans between one and seven years, you can find secured loans with terms of up to 20 years through a traditional bank or credit union.

Can I get a boat loan with a 700 credit score?

Yes. A score of at least 700 is considered “good” and lenders generally consider it a creditworthy score. However, you may still qualify for a boat loan with a score below 700. Secured loans and some online lenders, for example, require less stringent qualification requirements, making loans accessible to more people. candidates. However, lower credit scores often come with higher interest rates and larger down payments.