Refinance for more than the book value?

[kengba4]

Has anyone had success refinancing an RV for more than the book value?

Cuerrently we have a 6.75
% rate with nearly 15 years left on the loan.  We would like to refinance at a lower rate but fear we owe much more than the rig would book out. 

 

[COMer]

Doesn't sound like something they would be willing to do.  If you are "upside down", can you refinance your house (or similar) to get the money you need to pay off the RV loan since the home loan refinance wold be at much less than the 6.75 you are paying on the RV?

 

[Jeff Brown]

We are financed with USAA and when we bought our first rig the NADA value came out to around 6500, but we financed 10500.  The extra money came from options that I never should have paid for.  First purchase long before I knew about the forum.  I got spanked on that deal, but I learned that just by added a generator that the coach already came with you can add a couple of grand to the finance amount.

Thanks
Jeff

 

[eliallen]

Wouldn't hurt to ask your  finance co. if they would refinance. You never know until you ask.

 

[BernieD]

Wouldn't hurt to ask your  finance co. if they would refinance. You never know until you ask.

It works. As a matter of fact they don't even need to refinance. My loan was taken out in 2003 at the current rate then of about 7.5%. I am currently paying 5.25%. As rates came down, I kept calling the bank and asked them to lower the rate, and they did. I got a letter confirming the lower rate and that was what was charged afterward.

 

[kengba4]

It works. As a matter of fact they don't even need to refinance. My loan was taken out in 2003 at the current rate then of about 7.5%. I am currently paying 5.25%. As rates came down, I kept calling the bank and asked them to lower the rate, and they did. I got a letter confirming the lower rate and that was what was charged afterward.

Just curious who you bank with?  We did contact Bank of the West and the only options offered were to drop it by .5% (with additional fee) or to extend the term. 

 

[Frizlefrak]

You can always borrow from 401K if you have one and you can't swing the RV thing.

 

[Gary RV_Wizard]

Bank of America dropped the rate by 1% on a previous RV loan when I asked about refinancing. I need to talk to them about the current one as well.

 

[scottydl]

Yikes, I'm no accountant but I'm would be VERY hesitant to borrow against a stick house or retirement account to pay for an RV (that will continue to constantly depreciate).  If you feel you're at that point and aren't full-time enough to sell the house completely, it's probably a good idea to consider selling the RV and/or retain the services of a qualified financial planner.  RV'ing is a great pastime, but there's no point in drowning in debt just to maintain the lifestyle.

No need to "fear the unknown" either, when it comes to your RV's value.  Visit www.nadaguides.com and see what you can expect by looking up your year/make/model.  Do NOT add in any of the various Options listed when pricing a used RV.

 

[BernieD]

Just curious who you bank with?  We did contact Bank of the West and the only options offered were to drop it by .5% (with additional fee) or to extend the term.

Bank of the West :

 

[Jeff Brown]

USAA has refinanced my rate down to their current rate with at no cost to me twice.  Because I am financed at exactly the low limit for their 15 year term I have to refinace for more than I owe (35k) to get the term I want. Then they send me a check for the difference and I deposit that and send them an extra payment for the amount of the check that they sent me.  It all breaks even in the end.

Jeff