RV Financing

#1
I have good credit but my debt to income ratio is a problem. We have been wanting an RV for a long time and are thinking of a home equity loan to purchase one. My wife thinks we should use this loan to consolidate a few things and then find an RV lender. Does anybody have any advise as to which way we should go?
 
#2
RV Financing

I'm not a financial expert. I would personally refinance the home(if possible). Pay off all out standing debts then buy a RV. Reason: Home is tax deductible, RV loan interest is tax deductible as a second home.
All other debt, cars, credit cards, etc are not tax deductible.
Now I am sure others here will have better ideas than I have given.
 
#4
RV Financing

If you have enough equity in your home, you could get enough to pay the other bills and THEN also buy the RV. The downside: you will owe more and more on your home. The advantage: a home mortage is usually at lower interest rate than a conventional loan for an RV and the payback time will be longer. Putting the RV in a home equity loan would make it all tax deductable, not just the interest as in a conventional loan.

Lenders look at RV's as a "luxury purchase". If the credit is close, I have seen them turn down a loan for the RV. An equal loan for a car or truck probably would have been approved. With that thought, you might want to consult with your banker and get their advice. They are the ones that know your situation best.

Good Luck, you will enjoy the RV once you get it.
 
#5
RV Financing

Do you have any RV experience or have you just been wanting one? I wouldn't borrow money to find out if I really wanted one or not. Secondly, approximate how long you are going to take to pay for it and then approximate the depreciation. Just like a car or truck you are going to lose some money. How often are you going to be able to use your rv? Then determine if you can afford to spend that much. You may decide to rent (not as handy but more economical for one or two trips/year). My 2 cents (probably worth somewhat less). Krazee
 
#6
RV Financing

Thanks for the input. We have never had an RV before but we love to camp in the mountains. Our thoughts are we could still enjoy the mountains and get a good nights sleep rather than in the tent. We are both teachers and have summers off as well as a week for fall break, spring break,Thanksgiving break, and three weeks at Christmas. We live in Georgia and have grand children in Missouri. It sure would be nice to go visit and not have to rent a motel.
 
#7
RV Financing

We have sold a few teachers their units. One couple LEAVE the area the week after school is out and come back a couple of weeks before it starts again. They take advantage of the long breaks during the year also. Another couple camp only during the summer and don't use their trailer during the school year. You will have to decide how much you think you will use it and see if you can justify the cost.
 
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