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Discussion Starter · #1 ·
I was getting 6.9 from Key Bank no app. fees and no C.G. documentation, just straight NYS registration. I see Boat US has 6.75 and others have 6.5 to 6.75 anybody who has purchased since the boat shows and is closing March/April and has a better rate or connection, Please let me know.
 

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Blue Ayes-

I got 6.99 from NEWCOAST FINANACIAL, no application fees. Each institution has different parameters. I found that most that were offering under 7.25 were doing so for larger loans (usually above 50K). Others were stricter in who they approved. I was approved by BOAT US at 7.50, bot the would only consider the value of the hull and motors. They would not approve me for an additional 5k to purchase electronics. The additional 5 K would have put me over their cutoff limit for 6.75. Additionally, most institutions will grant lower rates for longer term loans.

If you have been approved by one outfit, call them back and tell them that you can get a loan from another outfit at a lower rate. See if they will "move" to keep your business. Keep in mind that previous credit history, current assets and the amount that you are putting down all play into the formula. What "Johhny" gets may not be the same for "Joey" even at the same bank.

Good Luck!

TSLTW
 

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Another possibility is to check your local banks and get a home equity loan, or a home equity line of credit. Lower rates and they are tax deductable. Usally less than 6%.
 

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Try Essex Credit. They are in Amyitville ask for Joan. It depends on how big the boat is and how much you want to finance. If the boat is large enough to document it you will get a better rate. I dropped almost 2 points because the vessel was documented.

bcmeyer
 

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Discussion Starter · #5 ·
Thanks guys, I'll try Essex also, I always see them at the shows. I know about the home equity line/tax breaks but here is something to consider

A) Interest on a boat loan with head, berth, and galley (IRS only requires cooking facility) is 100% tax-deducible as a second home with NO minimum nights spent on board

B) I am self-employed, married to a housewife if something happens to me death/disability the bank can only reposses my boat (which my wife would love) with the home equity scenario they could forclose on the house

C) Home equities are tied to Prime, currently they are very favorable, in the 4.5 range, but they can fluctuate rapidly and will I dont see major changes in the near future I dont really want to gamble. Additionally, some banks offer locked in home equity lines but currently, believe it or notthey are higher than the boat loans

D) My stong belief is that the less you mess with your home and nest eggg, the better.

E) I am an attorney, and work daily with a tax attorney/CPA and a Mortgage Broker, what works for me might not work for you, so if you have any questions, either post em or consult with a professional
 

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Blue Ayes,
Please respond to bcmeyer. e-mail [email protected]. I have some questions for you as I am buying a home in Fla. Try essex also like I recommended. Boat loans work off bonds as you probably know. I can put you in touch with Joan who helped me out on a large purchase of a boat.
BCMeyer
 

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I did'nt expect a book report response. Hey Blue, you asked for suggestions, I gave mine, I understand you, but Equity,at this time is still the best.They are not going to take the boat or house, that what INS.is for.
 

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Discussion Starter · #9 ·
Duck,

See my post above. Those 4% rates are teasers thet willeither chande after 6 months or one year or are tied to prime. 15 to 20 years on a boat loan is a long time those rates could hit double digits in that time. Thats why when interest rates are low the vast majority of home owners take30 year fixed motgages. Low rate and gauranteed for the life of the loan. Home Equities can fluctuate month to month.
 

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Discussion Starter · #10 ·
Duck,

See my post above. Those 4% rates are teasers thet willeither chande after 6 months or one year or are tied to prime. 15 to 20 years on a boat loan is a long time those rates could hit double digits in that time. Thats why when interest rates are low the vast majority of home owners take30 year fixed motgages. Low rate and gauranteed for the life of the loan. Home Equities can fluctuate month to month.
 

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Discussion Starter · #11 ·
Nansea 11,

I appreciate your response to my post and didn't mean to sound rude, If you took it that way I apologize. My post was specific to Boat Loans because thats what works best for me personally. I just dont believe in saddling the home with extra debt and while I have plenty of Life Ins. and decent disability I meant what I said about the boat. My wife could give two sh*** about my boat and fishing and I wouldnt want the next hubby to enjoy my boat. Seriously, if I ever had a bad financial patch, disabled or died The first $ have to cover the house if the boat (with a six figure loan) goes it goes. The reason I've been giving such lengthy "book reports" is that I believe that this is a hugely important topic and deserves well reasoned replies. Besides, I bill by the hour.
 

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Blue Ayes, I bought my boat 2 years ago the intrest rates were higher so I just paid it off this year in full. My question is what if anything can I write off now? I had two years with the loan, but couldn't take the intrest. I have a 24 footer with a galley. Thanks.

CaptSteve
 

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Unless you use the boat for bussines you have nothing left to write off. The only thing that is tax ded. is the interest not the boat. I suggest you contact a CPA or Tax consultant.
My tax man is retired from the IRS and he is even skepticale about writting off the interest, even though I do he said that the IRS is going to look at these deductions more carefully.
Just a thought!
Do you agree BLUE EYES?

bcmeyer
 

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2 yrs. ago I bought a new skiff @ $14K
Had around 9K cash. I put 5 k on a 1.9% Credit Card prom rate deal lasts for 6 months and you can cut yourelf a check. Then I Got a new 6 month teaser rate when that one was winding down, did a balance transfer. Then did same again. Ended up paying less then 3% on the borrowed $.
I know theres fees to do a balance transfer but I still saved, trick is cant be late or your screwed.
I bet intrest rates now have never been lower for boat loans, for many yrs. anyways. The big companys like genmar, brunswick might finance @ a locked in rate maybe 3-4 % I heard 0% loans were to be had from friends who went to the boat show.
 

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Discussion Starter · #15 ·
Capt. Steve

I agree with BC's assesment although speak to a CPA, If the interst you paid was high enough perhaps you could file an amendment, but I doubt it it's probably not worth it for the deduction on the two years. Remember, you get to deduct interest only from your gross income. So you save perhaps 35 percent of that depending on your tax bracket. Again, the boat deduction is for loan interest only, just like a motgage. You cant write off the principal and you cant depreciate the boat unless you are a commercial or charter fisherman, rent out your boat or use your boat for business purposes ie. entertaining clients (very risky almost inviting an audit) That being said, I again agree with Bc in that in my mind the one major, major benifit of the home equity method of paying for the boat is that at the end of the year your bank sends you an interest statement which you then deduct penny for penny. To the IRS this is a normal home mortgage deduction and raises no eyebrows. However, the boat loans come in a different way and could raise a flag, raise enough flags and you could get an audit. If you're a salaried employee don't sweat it, if your self-employed, in a cash business etc. it's something to think about

BC did you get my e-mail, by the way I spoke to Joan's office they have 100+ , 20 year, 6.75 w/ documentation and full income verification.
 

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Hi Blueayes
What are you finacing. If documantation will help you with your rate I would suggest doing it. It also should get you some Insurance discount, and is a plus when you go to sell the boat. It raise no eyebrows. NYS is one thing but by documenting the vessel it is on record with the USCG, which is federal. Says alot more especially with a resale, makes the deal go faster as far as financing and Insurance.
I got your note but as I am getting ready to leave I find less hours in a day especially with a closing coming up on the 13th.
Let me know what and where you went.

bcmeyer( Bill)
 

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Thanks Blue Ayes, Sorry I did not get back to you sooner had to go out of town. My problem is that I live in the city, no morgage. So I need all the duductions I can get. I am salary, and do not want to raise any flags with the IRS. Just trying to find ways to keep my money. Thanks again for the help.

CaptSteve
 

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Blue ayes, I know what your saying just trying to help. I understand why you wouldn't want to take a lone against a appreciating value such as a home instead of a second mortgage of 15-20 yrs for a boat thats a depreciating value. GOOD LUCK and thanks for the accounting lesson. Personally, I'll gamble on the line for 10 yrs and under and go to a fix if I spook from the rates.
 
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