
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, February 19, 1995                   TAG: 9502180021
SECTION: BOAT SHOW                    PAGE: BS-5   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

WHAT TO EXPECT IN A BOAT LOAN

Here are some rules of thumb which generally apply to boat loans:

Lenders generally look at intermediate term (three- to five-year) Treasury rates when pricing boat loans, then add in costs and desired profit. For small-boat loans, rates range from those similar to auto loans to somewhat higher installment loans. For larger boats, rates tend to be lower.

In terms of programs available to borrowers, many lenders consider $25,000 a dividing line. Loans below that amount offer fewer choices of program types, such as adjustable rate loans and variable loans.

Maximum loan term shortens as the amount borrowed goes down, but each lender is different. Loans of 15 years or longer are reserved for amounts borrowed of $25,000 or more; 12-year loans apply to borrowed amounts of less than $25,000 to $15,000; 10- to seven-year loans are for amounts down to $5,000.

by CNB