Recommendations on who to use for a boat loan?

I have a loan from The Pentagon Federal Credit Union. Costs $5 to join. Penfed.org

12 year note amortized as 20 years so the payment is pretty low. 5.75%. The thought is most people don’t keep a boat that long before moving to another one. $100k max loan.

Had my 340DA with them also. Called them up when I was looking at the 400DB. They basically walked through the NADA website asking me questions of what was on the 400DB. Gave me the max they would loan on the boat based on the NADA value (was much more than I needed). The lady said “Hold on a minute”. Came back to the phone and said “Your loan is approved”. “We will mail the check in the morning.” It was 18 minutes.

Also have my mortgage through them. 2.75%. They came to my house with the paperwork.

Very easy to deal with.

Been a member with them for around 50 years since my dad set me up with an account.

They (and Navy Federal) have great service and rates.
 
Been a member with them for around 50 years since my dad set me up with an account.

They (and Navy Federal) have great service and rates.
Thinking about opening a checking account with them also.
 
Before making a final decision, compare the loan offers on the market. Instead of applying for a boat loan, you can request a consumer loan, which may be on more favorable terms. My brother took out a boat loan at 2.75% last year. I think that's quite a lot for a loan. I study finance a bit, so when making a deal, I try to consider cash flow requirements, return expectations, and risk tolerance. This is very important in investments. Of course, it is most profitable to arrange installments, but it implies large payments for a short period. As a last resort, contact a consultant.
 
Hi guys. Sorry for bumping the thread. Is it worth taking out a boat loan and mortgage at the same time?
 
Hi guys. Sorry for bumping the thread. Is it worth taking out a boat loan and mortgage at the same time?
Huh? Only you know your financial situation, not us, feel free to share more details if you're looking for advice and opinions.

I personally hate debt, so I usually don't take out loans unless it works out to my advantage to do so.
 
I recommend obtaining a mortgage, then a home equity line of credit (HELOC) in place of a boat loan. When doing your annual tax return, you can claim the interest paid on a HELOC, where as the interest on boat loan is not deductable.
 
There is a school of thought that says the asset purchase should be funded by a lien on the asset itself.
Ie, why pledge your home against a boat.

As far as tax deductibility, i believe if the boat has a kitchen, bedroom and bathroom it would qualify as a second home for tax purposes. But, of course, you should check with your accountant.
 
I recommend obtaining a mortgage, then a home equity line of credit (HELOC) in place of a boat loan. When doing your annual tax return, you can claim the interest paid on a HELOC, where as the interest on boat loan is not deductable.
I believe the interest on a boat is deductible as a second home if the boat is fully self contained (Head, heat/air, genny, fridge, stove...) and you sleep on it at least 14 nights per year....
 
New laws state you can no longer deduct the interest on a HELOC for a boat purchase, you can't even purchase a boat with a HELOC now. I went through all of this last year when I bought my current boat.

I spent a lot of time talking to some very smart financial folks including my own. There's the laws, and then there's reality.
.
 
New laws state you can no longer deduct the interest on a HELOC for a boat purchase, you can't even purchase a boat with a HELOC now. I went through all of this last year when I bought my current boat.

I spent a lot of time talking to some very smart financial folks including my own. There's the laws, and then there's reality.
.
That may be a Virginia thing about permitted uses of funds. I looked at going the HELOC and decided not to. Any debt I have I want tied to the asset it is for.

The only way interest on any type of home equity loans is tax deductible is if the proceeds are used to improve your primary home. Any other use of funds is not deductible. That was part of Trump's tax cuts.
 
That may be a Virginia thing about permitted uses of funds. I looked at going the HELOC and decided not to. Any debt I have I want tied to the asset it is for.

The only way interest on any type of home equity loans is tax deductible is if the proceeds are used to improve your primary home. Any other use of funds is not deductible. That was part of Trump's tax cuts.
You said it better than I did, I misspoke, yeah it's the Trump tax cut thing that doesn't let you deduct the interest.
 
You said it better than I did, I misspoke, yeah it's the Trump tax cut thing that doesn't let you deduct the interest.
True, that Bastard raised the standard deduction. In 2023 it will be $13,850 for individuals and $25,900 for married couples. We used to be able to deduct $18,000/year in interest on mortgage, now, I can't deduct a single penny! How did that shit happen?!?! Who voted for that guy? Sheesh.

:cool:
 
I believe the interest on a boat is deductible as a second home if the boat is fully self contained (Head, heat/air, genny, fridge, stove...) and you sleep on it at least 14 nights per year....
Second home not rented out.

If you have a second home that you don’t hold out for rent or resale to others at any time during the year, you can treat it as a qualified home. You don't have to use the home during the year.
 
I wonder which loan did you pick in the end? I need to upgrade my boat and slightly renovate the interior. Of course, I need a loan to do it. I am just clueless about which option would be the most optimal.
 
When it comes to boat loans, it's important to work with professionals who specialize in this area.
Based on my personal experience, I highly recommend reaching out to a Mortgage Broker in Bolton. They have a wealth of knowledge when it comes to loans and mortgages, including boat loans. Their expertise and personalized approach can help you navigate the process and find the best loan option that suits your needs and financial goals.
I recently had the pleasure of working with them for my own mortgage, and their professionalism and dedication to their clients impressed me. They took the time to understand my unique circumstances and provided valuable guidance throughout the entire process.
 
No need to apologize for bumping the thread. It's a valid question to ask. Regarding your query, taking out a boat loan and mortgage at the same time can be a bit tricky. It's best to assess your financial situation first. Can you afford to pay for both loans? Are you comfortable with the monthly payments? It's important to consider these factors before making any decisions. If you need further assistance, you may want to consult with a Mortgage Broker in Southport. They can provide you with professional advice on how to proceed with your boat loan and mortgage. As for myself, I'm new on this forum, but I hope this helps.
 
True, that Bastard raised the standard deduction. In 2023 it will be $13,850 for individuals and $25,900 for married couples. We used to be able to deduct $18,000/year in interest on mortgage, now, I can't deduct a single penny! How did that shit happen?!?! Who voted for that guy? Sheesh.

:cool:
A correction and good news...the std deduction for married filing joint will be 27,700 and if you're 65+ add another 1,500 per qualifying individual.:)
 
A correction and good news...the std deduction for married filing joint will be 27,700 and if you're 65+ add another 1,500 per qualifying individual.:)
Plus the main thrust of the revised tax code was to limit SALT deductions. The question asked is why should a low or zero tax state supplement a high tax state. In that for example, New York state residence be able to deduct their State Tax fully whereas Florida, a no tax state, not have any such deductions. So by proxy Florida residence were supplementing Federal revenue by paying a higher ratio. I think @Jaybeaux and @mrsrobinson missed that salient point.
 

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