Finance Recomendations

[wannavolunteerF]

I am looking for recommendations to finance a pre-owned Class A. I am purchasing from an individual and am planning to finance for now. I will likely payoff when house is sold next year (unless it makes more financial and tax sense to invest at that time). I don't need all the advice on financing or paying cash.. that decision is made.

I am looking at two sources of financing, both of which have advertised 3 or more percent less than my credit union. One is Essex Credit (a Division of Bank of West) and the other is Southeastern Finance. Has one ever used either? Looking for ease of process and customer service. Also I am curious what Southeastern (who says they don't finance full-timers) would do, if I sold the house and didn't pay off the load, just changed my address.

[wannavolunteerF]

For those of you that chose to give me other alternatives, thank you but I really have already made decisions on financing the MH itself. I have researched many different options and have made this decision to finance it separately. There are tax implications and lots of other reasons why I have decided this is the best. I am planning to sell my S&B within the next year, and will likely pay off the MH with proceeds from the sale.

For those who answered what I asked thank you so much for assuring me that Essex/Bank of the West is reasonable alternative to my credit union as their posted interest rates are 2.5% to 3% lower that my credit union. I will as recommended consider total loan costs for each.

[pnichols]

Probably the cheapest way to finance is to open a Home Equity Line of Credit (HELOC), and then draw out the amount needed to pay cash for a pre-owned RV.

You can then pay off the HELOC balance in as short a time as you please, depending upon how much above the monthly minimum payment you pay back any month. HELOC loans can have very low interest rates.

You can keep this line of credit open at no charge for years and use it only as a source of funds for special situations, emergencies, etc..

[Thom02099]

Ductape wrote:

wannavolunteerFT wrote:
Thom02099, do you know if there are charges for on-line payments? I am in the Southeast, and there are no Bank of the West locations within about 1000 miles of me.

No cost / fee for online payments to BOW. You just give your routing number and account number, and the amount you want to pay.

Correct. No fees at all. Transferred to a different site from the BoW site, and as stated input routing and account number.

[Ductape]

wannavolunteerFT wrote:
Thom02099, do you know if there are charges for on-line payments? I am in the Southeast, and there are no Bank of the West locations within about 1000 miles of me.

No cost / fee for online payments to BOW. You just give your routing number and account number, and the amount you want to pay.

[mich800]

wannavolunteerFT wrote:
mich800, at my age and shape, I don't have a lot that is of value in a barter situation (LOL)

I like your plan better. Now I need to get back to grinding flour to trade for a sewer valve. :B

[wannavolunteerF]

mich800, at my age and shape, I don't have a lot that is of value in a barter situation (LOL)

[mich800]

ppine wrote:
The best way to avoid finance problems is to pay cash.
Buy a more modest RV and live with it.

The best way to avoid problems is to barter and not rely on that worthless paper.

[ppine]

The best way to avoid finance problems is to pay cash.
Buy a more modest RV and live with it.

[wannavolunteerF]

Thom02099, do you know if there are charges for on-line payments? I am in the Southeast, and there are no Bank of the West locations within about 1000 miles of me.

[1968mooney]

Never financed a MH using Essex but have financed 2 airplanes. Only $500,000 each so you may need more than I did. Easy and trouble free.

[Thom02099]

I used Essex/Bank of the West. Everything was done on line as far as application, processing, approval. Once approved, the paperwork was over nighted to me for signature with return shipping provided. The interest rate they offered was the best around; my credit union was not an option since they decided to no longer service RV type loans. Payments after the loan was in place were initially payment coupons that I took to a Bank of the West Branch (yes, I could have mailed them; I chose to make payments in person). At that time, on line payments were not available. That has since changed and the on line payments are through Western Union. It works, I got a good rate and it's seamless.

[Ductape]

Smart. Once you're a homeless full-timer the banks won't like you as much.

[wannavolunteerF]

Popsie, that is great that you were able to sell in such a short time. I am buying a "unicorn" of a motorhome. Only about 5-6 used ones for sale in the entire country (according to RV trader). I have found one at the price and age I want. I live in an area that is economically depressed still, the housing market is still very sluggish, so I know selling isn't likely to be quick. Also I have to work for another year, so I am trying to get all this banking stuff done while I am still employed and a homeowner.

[DownTheAvenue]

wannavolunteerFT wrote:
I am looking at two sources of financing, both of which have advertised 3 or more percent less than my credit union. One is Essex Credit (a Division of Bank of West) and the other is Southeastern Finance.

One of the ways they can quote a lower interest rate is they charge fees to initiate and then close the loan. I think Essex Credit will charge $500+, and if you add those fees to what you pay in interest, you may find that the effective rate from your credit union is more favorable.

Be sure to ask about all fees!!!!!!