If it sounds simple well, that’s because it is. Most new boats are purchased with a loan so well-established procedures are in place. As for who to take out the loan from? Your main top three options are:

1. Finance through your boat dealer – This is usually the easiest option. Boat dealers set up boat loans every day, so you’ll be working with a professional who can guide you through the process, has established relationships with lenders and also is interested in making the entire transaction easy and as seamlessly as possible. They may also have recommendations for setting up boater insurance too.
2. Get a loan from your bank – Some buyers who have a lot of equity in their home find it advantageous to take out a home equity loan or a second mortgage, either because they may get a lower interest rate or for tax purposes. Remember, this will add time and some complexity to the transaction.  So be prepared for a longer transaction or simply initiate the process ahead of time.   
3. Take out a loan with a lender specializing in marine financing – Since financing a boat is a bit different than financing other assets, there are some lenders who specialize in it. Trident Funding is one of these specialty banks. 

What will the payments be on my boat loan? 

Of course, there are many variables that will have an effect determining your payment and rate. Credit scores, debt ratios and net worth will all be considered by the lender.  Since everyone’s situation is different, it depends on your personal circumstances, the size and term of the loan. However, there are generalities that hold true for the vast majority of boat loans:

• Interest rates generally go down as the loan amount goes up.
• Interest rates generally go down as the term of the loan goes down.
• Higher loan amounts can usually be stretched over longer periods of time. In most cases, boat loans range from four to 20 years.
• Usually, the lender will be basing a boat loan on a 10- to 20-percent down-payment. That said, there are some no-money-down deals out there.
• Often, you can roll the expenses of accessories like electronics, trailers, and even extended warranties into a boat loan. Just be sure to pick out the complete package you want, ahead of time.
• Most lenders will be looking for credit scores of around 700 or higher. You can get a boat loan with a lower credit score, but expect that you may have to pay a penalty in the form of a higher interest rate or a larger down-payment.