Financing your next RV can be an easy, straight-forward simple process. Recreational vehicle lenders already consider you among the 98.5 percent of RV buyers that repay their RV loans timely and are willing to offer extended RV loan terms. Current record-low interest rates allow you to save money, or upgrade your RV purchase, all while making affordable payments.  It is very common to receive financing terms on your RV of up to 20 years.  Also, remember that you can write off the interest on your RV considering it qualifies as a second mortgage.

There are many ways to finance a recreational vehicle. Your loan for a new or used RV might range anywhere from 8 to 20 years, and have a down-payment between 10 and 20 percent. With any RV loan, the three keys to keep in mind are: down payment, interest rate and loan terms.

After you've selected an RV lending source to finance your recreational vehicle, you'll need to be approved by your lender. The paperwork required may be called a "loan application," "finance application," or "credit application," and provides information the lender uses to approve your loan. Take your time to accurately complete your application.

You may be concerned that your credit rating is lower than at the time of your original recreational vehicle purchase, compromising your ability to refinance. Prepare yourself by obtaining and reviewing a copy of your credit report before applying to refinance your recreational vehicle loan. This review allows you to catch and correct any errors, improving your rating as much as possible. You can obtain a credit report by contacting Equifax at 1-800-685-1111, Experian at 1-800-520-1221 or Trans-Union at 1-800-916-8800. Remember: Each time you request a credit report your rating is temporarily lowered, so if you believe your credit is good simply forgo this step.

If you have had credit problems, be prepared to discuss them honestly. RV loan professionals know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you've resolved such problems and your payments have been on time for a year or more, your credit may be considered satisfactory. If you have bad credit, all other aspects of your loan need to be in order, including evidence of equity, stability, income and assets. Late mortgage payments or bankruptcy can do significant damage to your credit rating.

You may be interested to know that the interest on your recreational vehicle loan can be deductible as second home mortgage interest. To qualify, your RV must be used as security for the loan and must have basic sleeping, toilet and cooking facilities. Virtually all RV types including motor homes, travel trailers, fifth wheels, truck campers and even some tent trailers are equipped with these facilities. For more information, contact your tax professional or call the IRS at 1-800-829-3676.

You can refinance your recreational vehicle online and save both time and money. While conveniently doing business from the comfort of your home, you may be able to take advantage of lower interest rates and better financing terms generally offered by online companies. Low RV Financing offers both competitively low interest rates and friendly financing terms, and specializes in recreational vehicle refinancing.

Beware of quick approvals.  Never fill out an automated “instant approval”, “automated approvals”, “5 minute approvals”, “30 minute approvals” type of application.  This is usually not reasonable with financing an RV

Don’t just apply blindly without asking the proper questions. You need to ask “how many times will your company pull my credit score and lower it with each pull?” If you do not ask this question, in some cases you will find that your credit report may have been pulled several times.  If you do not specify this concern, your credit can be pulled more than once.   Without speaking with someone you will never know! Without talking with anyone, how will you know what the fees are? Find out what their fees are. Make sure there are none that are hidden under ‘other costs or other fees’. You may be surprised with a bill for an extremely high loan processing fee a month or more after the loan is finished.

Banks don’t just look at your credit score. Many people who have great credit scores get turned down because they do not have enough disposable income to afford a new motor home or other luxury item. Your credit score is not the total answer, your complete credit profile is. Banks will look at the value of your trade, how much you currently owe on that trade, your debt to income ratio, your high credit.  If you are not approved, don’t hesitate to speak to the bank representative to gain a better understanding of why you were denied and if anything can be done.

Real RV financing companies are signed up with many or all of the major banks in the U.S. and many local and regional banks as well. By working with these major banks they are able to offer you the true service you should expect, finding the right bank for your financing needs.  In some scenarios, it is possible to be turned down for credit because of the trade payoff being too high and exceeding the banks loan advance % guidelines.  However, there are some banks that will make exceptions to this in the case of the Customer having good credit.  In this scenario, the bank is putting more emphasis on the Customers Credit instead of the loan advance.  Make sure the finance company you are working with has a good pool of lenders to work with as well.

Beware of Online Surveys. Some online surveys are questionable. Be careful and use good judgment when looking at survey invitations.  Some surveys may lead to a bank application that you are not yet ready for.

You remember this old saying, if it's too good to be true it usually is? When a dealer offers rates that are less than the current Market Rate, beware.  Read the fine print and COMPARE PRICES.  You may be getting a lower interest rate, but are you paying more for the vehicle you are purchasing.  In some cases, more money is charged to the Customer for the purchase price of the vehicle to buy down the rate from the financing lender. Don’t over pay for the RV you are buying. When you are ready to trade or sell the RV, don’t find yourself digging into your savings because you may be “upside down” in your RV. This is not common.  The only real answer is cash to pay down the balance. Many people who finance with the dealers and take advantage of very low rates, used as a come-on method, can end up thousands and thousands of dollars upside down.

0 Down is not always best.  Try hard to put down a minimum of 10% and preferably 20% when you purchase your RV.  This will better position you when you go back to the dealer in 3 to 5 years to trade your RV.  With zero down, you are likely to find yourself upside down.

Testimonials should be real. Always check for how real they appear to be. Do they have last names or just a first name?  Could you contact one of the testimonials as a referance?