I’m calling two banks today to apply for financing for my RV purchase.
I’m calling a tiny bank I’ve used for years in Northern Michigan and a tiny bank we used to buy my husband’s house on the Gulf Coast.
I’m not sure how the financing is going to look for me. My credit scores for the three credit reporting bureaus are 715 (Transunion), 704 (Experian) and 690 (Equifax).
I will probably have to use my husband’s income to help me qualify. My Austin house (only in my name) has a mortgage payment of $2250 — a big chunk of my gross monthly income. (Even if I have to rent my house, it will be such a relief to get out from my huge housing expenses!)
To get a ballpark figure of my RV payment, I have been calculating 10 years at 10%, but I have no idea what kind of financing is actually available. I plan to put 20% down, or about $10K on a $50K purchase. The bank in Northern Michigan will usually match my best financing offer.
My downsizing is dependent on my being able to buy this RV, so let’s hope I can get financing! I have no idea if things are loosening up in the credit markets.
I’ll let you know what they tell me tomorrow.
13 Comments
Credit is kind of tricky these days… if you don’t sell your place and if the banks don’t like your scores… a possible option might be to use your equity or some other thing of value as collateral? Collateral based loans many times can also carry better interest rates. Then you’d just need to make sure you have happy renters.
There may also be some bank rule, be it written or unwritten, that would require a certain percentage down on a RV that may have a sliding scale based on its type and how old it is. Might also be limitations on where you can purchase it from… I’m not completely sure… Banks have rules like people have opinions, they all have them…
I’m sure if folks here can’t give some real world experience on this, some of the RV forums out there would.
Where there is a will there is a way!
Can you “reposition” that mortgage to a lower monthly? What will your local rental market bear?
Where I live $1500. mo is pushing it (downtown Savannah) for a 3/2. Just wondering.
That is a very good credit score. ( Anything over 700-plus.) I’d check with Experian and find out what the lower score is all about…it might be something simple…you can write them to dispute the score and it often works. Did for me on one of them. Turned out it was a mistake and they immediately removed it…and voila.
I thought I read on one of the RV sites that they will finance longer than 10 years on RVs? Maybe that was just on new ones?
Problem I see,is you are still getting into debt..another new payment, loss of cash (the down) plus dependancy on a renter (and they can wreak havoc on a property), and unless you can get $2000.00 plus a month rent you still have $$$ difference to carry. And the card debt as well.
I want to say be careful…the selling angle seems the best, safest route….but then, I am very financially cautious, so that’s just me.And why I am still sitting here in my armchair!!!
XOXO
You are in danger of getting the cart before the horse. Keep it simple.
ANY additional debt could make the whole house of cards come tumbling down. FIRST you sell your house. THEN you buy an RV. Not the other way around. This may involve you renting for a bit after the house sale. Or temporarily moving in with David, or another relative.
Hokay. Here comes another metaphor:
Did you see The Matrix? Remember how Trinity ran off that rooftop, dove several stories down, and twisted at the last moment to fit neatly through a window in the building opposite?
That’s what you are trying to do. Everything has to line up just right. Otherwise… splat!
Go ahead. Be a superhero. But it sounds like getting the sequence right will be absolutely necessary. Don’t get ahead of yourself.
You are not dealing with virtual reality. The sidewalk is a long way down.
Bob
I feel like I need to point out that your downsizing is in no way dependent on financing a $50k RV. Your downsize is primarily dependent on an internal adjustment of what you perceive as “necessary”, or even what is required to be comfortable. I would submit needing an RV that is big enough to carry a stair stepper, while juggling a rental property and trying to learn the ropes of RV’ing while on an epic trip into the arctic is probably not going to feel like the downsizing you want. It’s probably going to be extremely stressful, which is more likely to cause anxiety attacks and other doubts to creep in.
As someone who has made this mistake time and time again – its too easy to get focused on the “gear”. The lifestyle is the goal, the RV is just a tool, and one that you will most likely swap at some point anyways. If you really want to jumpstart your readjustment, maybe you should consider doing some travel in a developing country. The first trip I made to South America changed my perspective in a huge way. All of the existential angst, obsessions over items and anxiety, these are first world problems.
Of course, just an opinion.
Way to go, Hal. All nail and no head.
Bob
I think Bob brings up a very valid point. Though it is good to have goals, it’s better to be safe rather than sorry. No harm in making adjustments when they are both valid and necessary.
Not knowing the details around your finances which I’d say should be one of those things that you keep to yourself, hope for the best but prepare for the worst and do what makes the most sense.
Want to clarify that, or just snark?
Hal – “Want to clarify that, or just snark?”
—————
I have to suppose this was addressed to me.
Sigh. Why do people always suspect the worst? Perhaps I have become too casual in my comments here.
That was a carpenter’s term, Hal. It means you sank the nail with a perfect blow, and left no mark in the wood.
In other words, I agreed with your remarks. Attaboy.
Bob
I agree with Bob and Hal. You are changing your lifestyle. There are going to be changes in the way you live in that lifestyle. You won’t have certain luxuries in the RV that you have in your sticks n bricks. This is all part and parcel of the decision to live in a RV. You can’t have all the material things from your present home crammed into the wheeled home. That’s the idea, in my opinion. Keep it simple so you can enjoy the life, instead of having a load of worries to contend with. It will be hard to focus on yourself if you have too much stuff and too many financial worries. Only an opinion,take it for what it’s worth.
Sorry to jump to wrong assumption bob. I have heard a reference to a nail with no head being used for bad employee that once they were in you could never get them out. Since I didn’t understand then I jumped to the wrong conclusion. Thanks for clearing that up.
Are you still feeling you will fear being “alone” while traveling and living on the road? I was thinking your whole life is changing so fast that anyone would feel anxiety over being alone. I do believe you are married. Does your husband plan on joining you, or is this the arrangement you two made together?
Do not worry about what you write on this blog. I is a modern day diary of sorts. Writing down your thoughts are such a healthy way to figure out the next step. It keeps you organized besides. I do not feel you are saying too much. I like knowing you on this blog. I am anxious to follow you on your journey.
Learning can be painful. Learning in a public forum, whew…
Thank you so much for the feedback.
I know you are all right.
Dear Annie, sorry I missed your earlier comment/question on this! Yes, I am married, but my husband won’t make the RV trip with me. He will fly to Alaska for a week after I get there. You are exactly right with regard to my new issues with being ‘alone’. I’ve always traveled solo, but am wondering if that might feel a little different this time. It is on my mind, but unresolved….
Thanks for the comment. I like your name!
Jennifer
Hello jennifer,
You are getting some great advice from Bob and Hal on this post so I’m just posting to let you know Im still reading, learning and adventuring right along side of you.
Since I’m doing a similar Lifestyle Change, I also take in the comments as if they were directed at me too, I need to see the advice as well.
I’m glad you post your thoughts, feelings and journey details. Much of what you post is the same things I am thinking, doing and wonder about.
Thanks to all for your comments, this is a great forum for learning, for both me and Jennifer.
Sell the house first, get that off your back, then you have less to worry about when it comes to your adventure.
You want to have as little stressload as possible during your journey, and enjoy the time you have to nurture new relationships, and have that time for yourself that you want so badly.
Even if your house doesn’t sell right away, put the journey off for a bit. Don’t get into deeper debt because of timelines.
Keep your options and your plans more open.
That’s my bit of advice today.
Hugs