There are many factors that can affect the RV loan rate you will pay, including:
It’s hard to overstate the relationship of your credit score to your RV loan rate. A borrower with a great credit score may pay thousands less over the life of their loan than someone with poor credit.
Improve your score: If you need help improving your credit score, there are steps you can take.
Your lender is likely to examine the proportion of your monthly income that goes to housing or other monthly expenses. The intention is to make sure you can comfortably afford the payments on your new loan. Lenders may raise your interest rate if they have affordability worries or require that your debt-to-income ratio is 40% or less.
As we mentioned, lenders want to be sure that you’ll be able to pay back the loan. You’ll be asked to state your monthly or annual income, but you can usually include multiple sources of income if you have them, such as retirement, Social Security benefits or a pension.
Whether the RV is new or used
You can typically find better RV loan rates on more expensive and new or relatively new RVs. Lenders consider older used RVs – typically five years or older – as riskier investments due to the possibility of wear and tear and high mileage. The riskier the investment, the possibility of a higher rate.
That said, you can usually buy used RVs for a greatly reduced price, which may more than make up for the increased interest rate.