How to Refinance My Boat

Financing allows you to purchase a boat without paying for it all upfront.
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Boats provide fun times on the open seas. But it’s not too fun to get stuck with a large monthly payment. When your credit improves or interest rates drop, you may be eligible for a better interest rate on your boat. Refinancing an existing boat loan lowers your interest rate and extends your monthly payments, lowering your monthly payment as a result. Refinancing a boat is very similar to refinancing a car.

Refinancing Your Boat

Step 1

Contact your current creditor to obtain the exact amount owed on the boat.

Step 2

Ask your current creditor it if offers refinancing options on your boat. If so, fill out an application and get your proposed refinance rate and terms.

Step 3

Apply to a couple of other banks or credit unions to find out the terms they offer for your boat.

Step 4

Compare all your offers, including the interest rate, the length of the new loan, loan fees and projected monthly payment. Also consider whether they offer benefits like online and telephone bill pay.

Step 5

Complete the refinancing paperwork with the lender that offers the most favorable terms. You’ll need to sign paperwork agreeing to the new loan terms.

Payoffs & Lien Releases

Step 1

Obtain a check from your new creditor for the exact payoff listed in Step 1.

Step 2

Give the check to your current creditor to pay off your existing loan.

Step 3

Obtain a lien release from the creditor to remove that creditor from your boat title. Give the lien release to the new creditor. Some lenders automatically pay off the balance and obtain the lien release on your behalf. Your new lender may not require you to do this process; it varies by lender.

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