How is Southeast Financial?

Yes, actually it does. It is the all-inclusive bottom line rate after all the math is done. And that includes the variables you listed earlier.

The APR is what they are going to charge you, it doesn't say how they are going to apply it to your loan.

avvidclif1 wrote:
Ok, ask if they calculate the interest on the daily balance, average daily balance, beginning balance, or ending balance each month. Can you see the difference it would make? Guess which generates the most interest? Those are just 4 variations, there are more.

I disagree completely.

I think those variables you have listed would all change the APR. That is why it's important to ALWAYS ask for the APR.

So I still say - If you know the amount you want to borrow, you know the term (how many monthly payments), AND YOU KNOW THE APR, then the payment will always be the same.

You need to tell the various lending institutions the first two numbers and ask them for the APR they will give you. Then you can compare.

Many folks make the mistake of asking about the 'interest rate' available. You want to ask what 'APR' is available. If you notice when looking at rates on-line, many times there will be an interest rate stated and then the APR right next to it - and they are different.

well my two cents worth; we found the coach we wanted, did a large down, about $30K, then financed through them for the immediate, then after a couple months, got a loan through my credit union and saved aver 2 %. now the details: not an RV loan, i borrowed the left over amount against my truck as it is, well was free and clear. But, an RV loan may get up to a bit over 6 % while a "New Truck" loan cam in at just 4.25 % and a lot less time saving about $3K over the life of the loan. Now i realize everyone doesn't have that option, we did and it worked out well for us. Good Luck & Be Safe ! ! !

Ok, ask if they calculate the interest on the daily balance, average daily balance, beginning balance, or ending balance each month. Can you see the difference it would make? Guess which generates the most interest? Those are just 4 variations, there are more.

avvidclif1 wrote:

westernrvparkowner wrote:
MBunch of hooey. Federal law REQUIRES disclosure of the terms of any loan, and that includes the interest rate. .

Yep but try what I said sometime. It might surprise you. Any finance officer can tell you how many different ways there, they don't like to as they want you fixated on the rate.

NOOO ! Just Nooo !

It's all math. 2x2x2 will always = 8.

As long as the loan amount, the APR, and the term (months) are the same, you will ALWAYS end up with the same loan payment.

The payment will change ONLY if you change one of those variables.

westernrvparkowner wrote:
MBunch of hooey. Federal law REQUIRES disclosure of the terms of any loan, and that includes the interest rate. .

Yep but try what I said sometime. It might surprise you. Any finance officer can tell you how many different ways there, they don't like to as they want you fixated on the rate.

And my contribution to your list of financial institutions to consider is Alliant Credit Union. I think they are the 5th largest credit union in the country. Been using them for about 4 years now, including 3 years full timing. Very RV friendly. Does everything on-line. Great phone app. 80,000 free ATMS around the country. 24/7 phone support with REAL PEOPLE answering the phone. Excellent rates. Endorsed by Escapees.

I have not set foot inside a bank/credit union in 4 years. No need to.

avvidclif1 wrote:
I would add a note to that. There are over 1000 ways to figure interest. I don't go by the rate but the monthly payment. I tell them the size of the loan and the term. I get a monthly payment that I can compare to another monthly payment. Many times you will find the lower rate has a higher payment. It's all in how the interest is figured.

Bunch of hooey. Federal law REQUIRES disclosure of the terms of any loan, and that includes the interest rate. Borrowing money is pretty much a commodity based exercise. Only things like late payment penalties, early termination charges and the like vary from lender to lender. Unless they use a guy name "Knee Smasher Sal" to collect late payments, you go with the best interest rate, the lender really doesn't make a difference.

SabreCanuck wrote:

avvidclif1 wrote:
I would add a note to that. There are over 1000 ways to figure interest. I don't go by the rate but the monthly payment. I tell them the size of the loan and the term. I get a monthly payment that I can compare to another monthly payment. Many times you will find the lower rate has a higher payment. It's all in how the interest is figured.

I agree whole heartedly with this post. Two things to consider:
1) Monthly payment.
2) Balance at end of 3-4-5 years?

You will find quickly how one interest calculation can affect the balance.

Things are getting confusing here. Using the same loan amount and the same APR and the same number of months will always result in the same monthly payment. You can only calculate it one way.

You must use the APR, not the 'interest rate'. APR includes all those mystery add-ons. If you know your loan amount and the term, just plug in APRs from the various banks/credit unions.

The trick is to use the same numbers. Need to compare apples to apples.