I'll admit it.... Im dumb when it comes to financing so that why I come to you guys cause there are some experts on this board. The last two boats I've done like 3-4 year loans and tried to pay them off quickly with high payments. Both boats I only kept for two-three years before selling.
I guess my question is that if I'm only planning on keeping my next one another 2-3 years is is dumb to get a 20 year loan with a low payment. I realize I'm only going to be paying mainly interest just didnt know if they length of the loan would substantially affect the payoff amount in two years. I guess what I dont understand is how they calculate what the payoff amount is. Do I pay the expected interest the company would have received over the 20 year span or just they remaining principle at the time of sale.
Like how would they payoff amount of a 10 year compare to a 20 year other than however much principal I reduced in the two years.
Let me know if this made absolutely no sense and Ill try my best to explain my question better.
Cliffnotes - Financing a boat, trying to determine the difference between payoff amounts between loan lengths if I only plan to keep the boat a couple years.
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