steveandcasey
New member
- Joined
- Feb 16, 2011
- Posts
- 4
Hello! My name is Steve, and I'm about to purchase my very first travel trailer. After 14 boats, we decided to try the land as well as the water.
My question concerns financing and the "rule of 78". My dealer will finance my TT at a rate under 5%, and for 15 years. What troubles me is that he said that every one of their lenders uses the rule of 78. This means that in the earlier years, I will pay more interest than toward the end of the term. This is not ideal if you pay the loan off early.
I called the Good Sam club loan department, and the nice gal I talked to told me that all the lenders they deal with do exactly the same, ie; the all use the rule of 78.
I checked with my local bank, where I have accounts and loans, and for an RV loan the will only do 7 years at 9.9%. That won't work.
So my question is, does anyone know of any lender that offers terms like the dealer can get me, but that do NOT use the rule of 78 to calculate interest payments?
I sure hate that to be a deal breaker, but don't see where I have many options from what I can tell.
Thanks for helping!
Steve
My question concerns financing and the "rule of 78". My dealer will finance my TT at a rate under 5%, and for 15 years. What troubles me is that he said that every one of their lenders uses the rule of 78. This means that in the earlier years, I will pay more interest than toward the end of the term. This is not ideal if you pay the loan off early.
I called the Good Sam club loan department, and the nice gal I talked to told me that all the lenders they deal with do exactly the same, ie; the all use the rule of 78.
I checked with my local bank, where I have accounts and loans, and for an RV loan the will only do 7 years at 9.9%. That won't work.
So my question is, does anyone know of any lender that offers terms like the dealer can get me, but that do NOT use the rule of 78 to calculate interest payments?
I sure hate that to be a deal breaker, but don't see where I have many options from what I can tell.
Thanks for helping!
Steve