The balloon payment amount varies from lender to lender and takes into account the age and type of boat plus other factors. Refinancing is a popular choice - you can either keep your boat and simply pay off the remaining amount with a new loan, or upgrade your vessel. your boat or jet ski) to pay off the balloon, or refinancing with your loan provider to pay off the remaining sum. Once you have reached the end of your loan term, you have the option of paying your balloon amount, selling the item you got the loan for (e.g. This lump sum amount is technically excluded from the loan amount that your repayments are covering, which decreases your repayment amount. ![]() Essentially, it is a one-off lump sum that you will pay off at the end of your loan. What is a Balloon Payment?Ĭonsidered an optional extra, a balloon payment can help make your weekly or monthly loan repayments more affordable. While the comparison rate helps you compare the cost of one boat loan with another, its also important to consider other features from the loan provider such as flexibility of repayments, redraw and direct debit facilities. It does not take into account all fees, however, such as early repayment fees or statement fees, nor does it include government and statutory fees as these are standard fees regardless of the loan provider. ![]() It is calculated using a combination of the nominal interest rate and up-front and ongoing fees. As the name suggests, the comparison rate lets you compare the actual cost of a loan from different providers.
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