Boat and yacht loan calculator

How marine loans are usually structured

Yacht loans in the US are typically simple interest installment loans secured by a preferred ship mortgage or a lien on the title. Lenders that specialize in marine lending commonly offer terms of 10 to 20 years on larger boats, with shorter terms for older vessels or smaller loan amounts.

Down payments of 10 to 20 percent are standard, and many lenders want 20 percent or more on older boats, liveaboard use or loans above a million dollars. Expect the lender to require a recent marine survey, proof of insurance and, for documented vessels, US Coast Guard documentation.

What affects your rate

Credit score, liquidity after the purchase and the age of the boat do most of the work. A newer boat from a mainstream builder is easy collateral, while a 30 year old custom yacht may only qualify for a short term or require a larger down payment. Some lenders price loans for boats used as liveaboards or in charter programs differently, so mention your intended use up front.

• Boat age, many lenders cap the term once a boat passes 15 to 20 years old
• Loan size, larger loans often get better rates
• Liquidity, lenders like to see reserves after the down payment
• Use, charter and liveaboard use can change terms

Sales tax, fees and the true cost

Sales or use tax on boats varies by state and some states cap the tax on vessels. The calculator lets you roll tax into the loan, which many buyers do, but financing tax increases total interest. Add documentation, title and survey fees separately when you plan your cash needs.