Buying a Boat? Get a Preferred Ship Mortgage

Much like buying a home or vehicle, purchasing a boat often requires financing. This involves taking out a loan that you will make monthly payments on until it’s paid off. Also like financing a home or vehicle, there are several kinds of loans you can use to buy a boat. Paying cash is the best way to buy a boat, but if you prefer to take out a loan, a preferred ship mortgage is a great option. Why? Because it gives you more freedom than a traditional bank loan. Keep reading to find out more about the benefits. 

Several Payment Options

A traditional loan requires a monthly payment. Each payment you submit is divided between the interest, principal, etc. until you finish paying off your boat. With a preferred ship mortgage, you have more options. You may be able to pay every other week, as well as create an accelerated or prolonged repayment schedule, based on your finances and needs. However, you still have the option of making a monthly payment, if that’s what you prefer. 

There’s No Penalty for Prepayment

This prevents you from being stuck with a low-interest rate that suddenly goes up soon after the loan is secured. If you have a fixed-rate loan, you’ll have to pay this increased interest as it goes up. With a preferred ship mortgage, you can choose to secure a loan with either a fixed or changeable rate. That gives you the option of making different arrangements, should the interest rate go up.

Affordable Rates and Fees

When you buy a boat, you naturally want to get the most value for your money. When you buy a boat, you will be responsible for paying associated fees, which is money on top of the mortgage payment. With a preferred ship mortgage, you’ll get a competitive rate for your fees so that more of your money can go toward paying off your boat and less to the bank. It’s always a good idea to shop around for a loan, which ensures that you find the lending institution you feel comfortable working with and you get the interest rates you desire. 

Preferred Ship Mortgage

Flexible Terms and Conditions

The great thing about a preferred ship mortgage is that there’s room to customize it to fit your needs. Because boat loans aren’t as common as those taken out for homes or businesses, you will likely see higher interest rates when you buy a boat. However, with a preferred ship mortgage, you may be able to modify the loan, based on the expected duration of the loan, as well as other factors that can help you buy the boat you’re dreaming about. 

Keep in mind that a preferred ship mortgage is only available for vessels that are registered with the United States Coast Guard. You will need to be sure you take care of that paperwork as part of the purchase process. If you need guidance and assistance with the preferred ship mortgage process, contact Vessel Documentation Online. Our friendly staff is happy to provide advice.