Ok, this is a little different situation, but wondering if anyone has ever tried to do this. We currently own a Montana 5th wheel, and we financed it through my 401k. We still owe $35,000 on the loan. The problem is that it was only for 5 years, so the monthly payments are killing us right now due to some changes that we didn't plan for. I'm wondering if anyone has either a) refinanced a 401k loan on an RV with a bank or someone else, to lengthen the term, or b) bought a new RV, traded in the current RV and some how had the finance co pay off the 401k loan so the full loan amount could be with them. I was going to call some banks and Good Sam financing today, but forgot it's Presidents day, so everyone is closed! TIA

As long as you have equity I see no reason refinancing should be a problem. The maximum term you can borrow from a 401k is 5 years. Personally, I would do what it takes to refi and payback the 401k unless you are very comfortable in your job. If you leave that job or get let go that is a taxable event.

Yea, would ideally love to refi. I'll take any suggestions on good banks to work with - ones that like full time RVers as some won't talk to Full timers.

Are you a member of Vystar CU? If not, try Bank of America. Look up the value of your 5ver on NADA to see where your at.

It's tougher to refinance. We did it a couple of years ago on a 4-5 yr old unit- went from over 8% to under 4%. But they had to tack in a little as we said we were going to upgrade to residential fridge. But they wouldn't go 5-figures. If you buy a new one, unless you get a very good deal, it might make your payments higher and still won't pay off the 401k loan. We borrowed from the 401k to pay off the balance of the F450. So we didn't end up increasing the budget. Rather we're paying ourselves interest instead of Ford Credit.

FaithS wrote:Ok, this is a little different situation, but wondering if anyone has ever tried to do this. We currently own a Montana 5th wheel, and we financed it through my 401k. We still owe $35,000 on the loan. The problem is that it was only for 5 years, so the monthly payments are killing us right now due to some changes that we didn't plan for. I'm wondering if anyone has either a) refinanced a 401k loan on an RV with a bank or someone else, to lengthen the term, or b) bought a new RV, traded in the current RV and some how had the finance co pay off the 401k loan so the full loan amount could be with them. I was going to call some banks and Good Sam financing today, but forgot it's Presidents day, so everyone is closed! TIAI agree that it is best not to borrow from your 401k. If you have the money in decent mutual funds, you miss a lot of growth by tying up your 401k money. There are other reasons not to either. RVs are tricky things to borrow money for because they go down in value and the payment terms are sometimes so long.Quoting this website:https://www.mutualfundstore.com/time-value-of-money-calculatorYour investment of $35,000 earning a rate of 7.00% annually for 5 years would grow to $49,617, before taxes. This assumes that you do not withdraw investment earnings or make any additional contributions. The future value of your investment over different time periods would be as follows:Year Future Value Without Additional Contributions1 $37,5302 $40,2433 $43,1524 $46,2725 $49,617

RV Financing | Good Sam Community

14 Replies

hitchup
Explorer
Feb 16, 2015
It's tougher to refinance. We did it a couple of years ago on a 4-5 yr old unit- went from over 8% to under 4%. But they had to tack in a little as we said we were going to upgrade to residential fridge. But they wouldn't go 5-figures.

If you buy a new one, unless you get a very good deal, it might make your payments higher and still won't pay off the 401k loan.

We borrowed from the 401k to pay off the balance of the F450. So we didn't end up increasing the budget. Rather we're paying ourselves interest instead of Ford Credit.
2012Coleman
Explorer II
Feb 16, 2015
Are you a member of Vystar CU? If not, try Bank of America. Look up the value of your 5ver on NADA to see where your at.
FaithS
Explorer
Feb 16, 2015
Yea, would ideally love to refi. I'll take any suggestions on good banks to work with - ones that like full time RVers as some won't talk to Full timers.
mich800
Explorer
Feb 16, 2015
As long as you have equity I see no reason refinancing should be a problem. The maximum term you can borrow from a 401k is 5 years. Personally, I would do what it takes to refi and payback the 401k unless you are very comfortable in your job. If you leave that job or get let go that is a taxable event.

Forum Discussion

RV Financing

14 Replies

About RV Tips & Tricks

Related Content

Used RV Financing

RV Financing..

Financing RV Lot

rv financing

financing rv