Talked to Vicky and the Mothership and got on "the list" for a new 27' MB.
This hasn't been easy but I look at it this way...
We are in our sixties and life isn't getting any longer.
This will be our final motorhome.
Tons of equity in the house with a Roth account to pay the monthly for a long time.
Taking money out on the home seems the best way to finance. We both have very high credit scores so we should qualify for the best rates.
Any better ways?
Any financing tips would be appreciated.
Thanks!
For myself only, I would be reluctant to put my main home at risk to finance a RV. I would also be reluctant to use retirement funds. Ideally, I would take out a loan against the RV through a local credit union. They tend to have the best rates.
When my DW and I purchased our RB from the mothership, my brother and I owned a rental duplex with no note on it.
To finance the LD, I floated a loan from Bank of the West at about 3.5% for 20 years. I had decided to use my substantial rental income to pay the monthly LD loan for the next ten years then pay it off after selling the duplex. The whole transaction was pain free and went according to plan.
In 2017, we decided to sell the duplex which actually sold in less than 5 days. At that point I decided to pay off the LD loan and in doing so saved nearly $40,000 in interest. Worked well for me. May not work for others.
Just my 2 cents.
Kent
For myself only, I would be reluctant to put my main home at risk to finance a RV. I would also be reluctant to use retirement funds. Ideally, I would take out a loan against the RV through a local credit union. They tend to have the best rates.
Motorhome loans are 7 to 8% whereas a refi is around 3%.
Even with closing costs and points, the mortgage loan is a better deal I think.
Motorhome loans are 7 to 8% whereas a refi is around 3%.
Even with closing costs and points, the mortgage loan is a better deal I think.
True.
I seem to recall that, in the past, one could deduct the interest on a RV loan as it was considered a second home. Is that still the case?
Greg,
I don’t recall any such tax breaks for our LD financing.
On another tax break note, AM Solar has a banner on their site that solar installs for 2020 garner a 26% Federal tax break due to certain RVs qualifications and the bases as being a second home.
Kent
We took out an RV loan from Bank of the West in 2014 at 4.125% on a 10 year note.
I could have put on an equity line of credit at 5.0%
The mortgage on the house was zeroed out a month before I retired. What a coincidence.
YMMV
Joel