Key Takeaway
- Many boat loan interest rates start around 7.49%.
- Interest rates vary based on such factors as your credit score.
- Some lenders may finance boats as old as 20 years.
How Do Lenders Calculate the Interest Rate on My Boat Loan?
Boat loans work similar to personal loans, with a number of factors determining the interest rate on a boat loan. These include:
- The borrower’s credit score
- The borrower’s financial information such as credit history and income
- The purchase price of the boat
- The boat’s age
- The loan term
Also, interest rates fluctuate depending on market conditions and inflation. There has been an increase in the boat loan interest rate because the Fed has raised rates to slow inflation. This has affected interest rates on many products. For instance, the average interest rate on a 15-year mortgage with a fixed interest rate is 6.86%. For new cars, the average interest rate is 6.79%.
Other Factors that Affect the Cost of Your Boat Loan
Additional factors that affect the cost of your boat loan include:
- Loan amount
- Down payment
- Fees such as origination fees
- Length of the loan
- Borrower’s credit score
To get an idea of how much you would pay for a boat loan, use our personal loan calculator.
What Is the Oldest Boat a Bank Will Finance?
Boat Lenders With Low-Interest Rates
There are a variety of lenders for boat loans, ranging from banks and credit unions to marine dealers.
Lender | Starting interest rate | Max loan amount | Max loan term | Minimum credit score |
Southeast Financial | 7.49% | $4 million | 20 years | 575 |
Trident Funding | 7.74% | $2 million | 20 years | 600 |
LightStream | 7.49% | $100,000 | 12 years | None, but good credit recommended |
Mountain America Credit Union | 8.99% | Unknown | 15 years | None |
What Is the Difference Between Interest Rate and APR?
The interest rate represents the cost of the loan for the borrower, and affects how much you pay each month on the loan. APR, or annual percentage rate, represents how much the loan costs each year. This includes not only the interest rate, but also the additional costs of the loan, such as origination fees, points, and other fees.
What Credit Score Do I Need to Get a Boat Loan?
What Is the Average Term on a Boat Loan?
On average, boat loans are for between 10 and 15 years, but it’s possible to get boat loans with shorter or longer loan terms.