Campers and recreational vehicles provide young couples with a means to travel and camp in relative comfort. And you may pay a pretty penny for that comfort. RV financing falls under the same standards as auto loans. The vehicle loan is secured by a lien on the title of the camper. Your monthly payment depends on the interest rate, purchase price and length of the loan. Refinancing your existing loan changes the terms of the contract such as the interest rate and length of the loan, often lowering your monthly payment.
Contact your existing lender about refinancing. Tell him your circumstances whether you are attempting to lower your monthly payment or secure a better interest rate. Contact several other lenders to get the best possible refinancing terms.
Complete the Applications
Each lender you contact requires a completed loan application. This application contains your personal, income and vehicle information. The lender reviews your credit history and researches the value of your camper to determine whether he will extend credit to you.
Review Your Offers
Each lender comes back with an approval offer or a denial letter. Each approval offer comes with different terms including a loan length and interest rate. Depending on the lender, the loan offer may contain other fees and terms such as loan origination fees and pre-payment penalties. Review all your offers before settling on a particular lender.
Sign the Paperwork
Choose the lender you with whom you want to refinance your camper. Sign the paperwork to transfer your loan to their company. The lender will pay off your current loan and procure a lien release for the camper title from your current lender. The new lender then places his own lien on the vehicle.
New campers depreciate rapidly after purchase often by tens of thousands of dollars. Negative equity, or being upside down, makes refinancing difficult, if not impossible. Lenders are leery of refinancing an upside-down camper because the entire loan is no longer secured by the value of the vehicle. Your potential lender may require you put down enough money to balance the negative equity in your camper before you get a refinance offer.
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