If you’re in the market for a new boat, it might be worth your while to check out what rates are available before you decide to buy, boat loan rates vary among lenders, but they all consider a few key factors when deciding whether to approve an applicant for a loan: the borrower’s creditworthiness, income and the boat’s value. Some lenders also offer alternatives to traditional boat loans, such as home equity loans and lines of credit. Using these options can help you save money on interest costs, although they come with some drawbacks.

When comparing boat loan rates, it’s important to consider the annual percentage rate (APR) and repayment terms. The APR, which includes both the interest rate and fees, determines how much your monthly payments will cost over the life of the loan. APRs are typically higher for those with lower credit scores, and the longer the repayment term, the more you’ll pay in interest over time.

It’s also worth considering whether a lender has any origination, application or other processing fees. These can increase the overall cost of your loan and may be a deal-breaker if you’re trying to keep your budget tight. Lastly, you should always check whether a lender offers a variable or fixed interest rate. Many borrowers opt for a fixed rate, as it’s easy to understand and can be locked in for the duration of the loan.

The best boat loan rates depend on a variety of factors, including the borrower’s creditworthiness and repayment history. Taking steps to improve your credit score and reduce your debt-to-income ratio can make it easier for you to qualify for a boat loan, even with bad credit.

In addition to examining interest rates, you should also be aware of the repayment terms and down payment requirements that lenders require for boat loans. Down payments are often between 10% and 20% of the total value of the boat, depending on the lender and the type of boat or watercraft you’re buying. Some lenders may require a down payment as high as 50% of the purchase price.

Another factor to consider is whether a lender allows you to choose between an unsecured or secured boat loan. Secured loans require that the financed boat serve as collateral in the event of nonpayment. In comparison, unsecured personal loans do not.

Finally, you’ll want to consider whether a lender accepts online applications and whether it offers weekend customer service. These features can make it easier for you to apply for a boat loan and receive a decision quickly. You might also benefit from researching whether a lender has any specific restrictions, such as the type of boat you can purchase or its age, and what types of boats they’re willing to finance. In some cases, these restrictions can narrow your choices and limit your options for financing a boat. This can be frustrating, but it’s important to be realistic about your expectations when purchasing a boat.