Big Ticket Item after Retiring???

[reubenray]

We are in the process of selling our fifth wheel trailer and truck to buy a motorhome. I am retired and of course on a fixed income. I also have monthly deposits off of my separate 401k plans.

Will I be able to get financing for the motorhome? I plan on putting about 30% down. Surely our high credit rating and past history has something to do with this.

[REWahoo]

Quote:

Originally Posted by reubenray We are in the process of selling our fifth wheel trailer and truck to buy a motorhome. I am retired and of course on a fixed income. I also have monthly deposits off of my separate 401k plans. Will I be able to get financing for the motorhome? I plan on putting about 30% down. Surely our high credit rating and past history has something to do with this.

You will probably be able to finance the MH but not at at rates as favorable as for an auto loan - not due to your credit rating, because of the higher default rate and the accelerated depreciation of a MH when compared to a car.

Do you have a Home Equity Line of Credit (HELOC)? Prior to retiring we set up a HELOC and when we bought our MH I drew on it to finance about half the cost for a couple of years until we paid it off. The 2.4% interest rate was less than half what I would have paid for traditional financing.

[panhead]

I have never financed a motorhome, but I remember being told at one point that you could get a mortgage for a motorhome. With rates so low, maybe that's something to look into?

[reubenray]

Our home is paid for and is only 7 years old. I checked into Home Equity loan rates a while back and those rates was higher than the RV rates. I will check into a HELOC. We financed our current fifth wheel at 5.25%. If we had financed more it would have been lower.