RV Refinancing: Lower Payments or Pay Off Quicker?

Putting the ‘WIN’ back in Your Winnebago

When you’re paying off ‘big toys’ and RVs, your savings can evaporate like water from a lake in summer.

• Nothing takes the joy out of jet skiing like a bank account that becomes shallower each month. 
• Your boat loses some of its float when you review your budget and can’t find anything else to cut so you can start saving again. 
• And your Winnebago? It feels more like a Lose-ebago when you think about how much you spend each month to pay it off. 

The good news is you can put the “win” back in your Winnebago—and get back in the black again—by refinancing your recreational vehicle loan. 

Refi My RV?

When it comes to refinancing, most people think of their mortgages or their car loans. But recreational vehicle loans can also take their toll on us, too. 

Whether you’re paying off an ATV, motorcycle, snowmobile, or even a street-legal golf cart, refinancing can ease the strain on your bank account, help you save in the long run, and keep you on the road to recreational vehicle ownership, too. 

Wondering if refinancing your recreational vehicle loan is a good idea? Consider the following:

1. Your better credit score = lower interest rates

If interest rates have dropped or your credit score has improved since you secured your current loan, you may be able to lock in a lower interest rate through refinancing. A lower rate translates into a lower monthly payment and less interest paid over the life of the loan, too. 

2. Get lower rates from the right lender 

When you secured your current loan, you may have done so without looking for lower rates at competing lenders—something many of us learn about the hard way. 

Upon joining a credit union, you may find that its recreational vehicle loan rates blow the competition out of the water. Refinancing to take advantage of better rates to pay for your boat is a smart way to stay afloat!

3. Lengthen the loan to get lower monthly payment

If you are primarily concerned about reducing your monthly payment so you can make ends meet, you may benefit from refinancing in order to lengthen the loan term. If you are paying off your current loan over a 48-month period, for example, refinancing to pay over 60 months will result in a reduced monthly payment. 

You will pay more in interest over the life of the loan this way, but having more padding in your bank account in the present can also mean having more peace of mind.

Maybe you don’t want to spread it out. You want your tenement on wheels paid off quicker. In that case…

4. Refi to pay it off faster

If your financial situation has improved since securing your loan and you’re confident you can pay off your loan faster than you originally anticipated, refinancing can help you do so without incurring any prepayment penalties. While securing a lower interest rate and a shorter loan term is the ideal way to pay less for your loan overall and pay it off faster, shortening the term is sufficient to help you save. 

In addition to helping you hang onto your hard-earned cash, the money you save by refinancing can also be used to fuel your fun as you use your recreational vehicles. 

That’s a win for you and your Winnebago! 

If you’re wondering if refinancing is a good idea when it comes to your particular recreational vehicle, visit our website to learn more about our loans, and then reach out to talk with us about your situation.

At Millstream Area Credit Union, we’re here to listen, to help you make informed decisions about your finances, and to navigate the refinancing process with you. We look forward to hearing from you, and to helping you get onto the road of refinancing!