Travel Trailer Buying/Financing Questions

Ralph Cramden wrote:

delwhjr wrote:


Nothing wrong with going long as long as you don't actually go all the way.
With the lower monthly payment it allows for emergencies. A huge medical bill or catastrophic problem could make a large payment on a short time note difficult or impossible but the smaller payment may still be manageable, keeping your credit clean. Pay off the long note quick(maybe in half the time or shorter), saving interest and prevent being upside down.

Woulda, Coulda, Shoulda.

It seems to me that if one takes out a 15 yr drag and then proceeds to pay off the long term loan quick, maybe in half the time or shorter (7 years or 6 or 5), saving interest and preventing being upside down, that would require you to up the payment from the get go to what it would of been on a 5 or 6 year drag anyway, or close to it?

You then need to have a tuned up crystal ball so you can predict the catastrophic problem you mention will not hit until after year 6 or 7? Or do you wait until year 6, when you'll still owe close to the original amount financed on the 15 year drag, and then make massive payments in the order of minimum + 900% or something, for a year to pay it off.

Not even taking into account typically you get a better rate on a 4 or 5 year loan than you'll get on a 15.

You miss the point. It is not saving money on payments. You would pay close or more than the payment of the shorter term. The use of the longer term is a fail safe point to allow for the POSSIBILITY of those events. Sure it may cost more in a higher % but it may be what a person needs for their piece of mind and the cost of the difference will be less than the bigger hit in your credit if you have to miss/reduce payments.
It is just like insurance, many people feel the need to insure for every little thing. Others will take the gamble on everything or some things. It may not be the best option but it is an option.