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Boats are extremely popular with South Carolina residents no matter what part of the state they reside. There is literally some navigable body of water that is located within no more than 20-30 miles from anyone’s home in the Palmetto State. Most people need little more than a longboat to skim across South Carolina’s many rivers and lakes.

For those who want something more, such as a boat that can accommodate at least six or more passengers, a Boat Loan is usually in order. Not too long ago, finding a lender that made Boat Loans was difficult.

Today, the challenge is deciding which lender to us in an active boating market. There are plenty of specialty marine and other commercial South Carolina lenders who are happy to provide you the money to finance your boat ownership dreams. Before you head out, heed the following on all things Boat Loan.

Types Of Boat Loans Available In South Carolina

As with any other commercial loan in South Carolina, there are several types of Boat Loans that are designed to best meet the financial needs of different individuals. The general types of Boat Loans available through South Carolina lenders are:

Fixed Rate Boat Loan: The interest rate on a fixed rate Boat Loan is set when the loan is secured. The interest rate remains the same through the entire term of the Boat Loan and does not change when market indexes or other interest rates fluctuate.

Variable Interest Rate Loan: A Boat Loan where the interest rate is not fixed for the life of the loan. These Boat Loans adjust periodically based on an index that changes with market conditions. The rate of interest is the sum of the index plus or minus a margin. Most variable rate loans have periodic interest rate and repayment caps as well as a cap over the life of the Boat Loan.

Simple Interest Rate Boat Loan: This is a method by which the payments between the principal and interest on the Boat Loan can be viewed as two separate entities. To calculate the interest owed, one takes into consideration the principal balance, time since the last payment was made, and the current interest rate. The remaining balance of the monthly payment goes toward paying off the principal.

Balloon Payment Boat Loan: A balloon payment is a large, lump sum payment commonly made at the end of a long-term balloon Boat Loan. In exchange for this large final payment, the individual receiving the Boat Loan has to put down less cash than under a standard Boat Loan. The biggest benefit is the lower interest rate throughout the life of the Boat Loan, and smaller monthly payments.

There are also both secured and unsecured Boat Loans. Secured Boat Loan requires a borrower to put some kind of collateral to become eligible for the loan. Unsecured Boat Loans are still available but harder to find, and the interest rates associated with such loans are over 20 percent annually or more.

Available Boat Loan Time Periods

The major factors that go into the number of years for which your new South Carolina boat can be financed involves the cost of the water craft and the finance rate. A new boat can be financed by many South Carolina commercial lenders for 120 months or more, meaning that after 10 years of wear and tear on your boat you will still be making payments. Boat Loans are also available for durations of 15 or 20 years for more expensive purchases, such as yachts.

For many South Carolinians the only other purchase item in their lives that even comes close is the mortgage on their home. For this reason, a second mortgage on your home, a home equity loan, or even a complete home mortgage re-finance is sometimes the way to go when the purchase involves a much more expensive boat, like a large yacht or commercial vessel. This can usually result in the best terms of all with a lower payment and if you wish to use the equity in your home to make your boat purchase then this would certainly be an option to consider.

You also need to know about:
What Insurance Is Associated With A Boat Loan?
Visit www.BoatInsurance.sc for more information about Boat Insurance in SC.
Find many other South Carolina Boating Resources at www.Boating.sc - also, if you are an avid Boater in South Carolina you will Find a Marina anywhere in the State at www.Marinas.sc.

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