Quote:
Originally Posted by G-mo
Very true, Mr. Sunshine. But as I said, I don't actually plan on paying for that long; it will be paid off sooner, but that is how to get the best rate.
The only upside to being upside-down is in the unfortunate experience of a total loss; depending upon your insurance policy, gap insurance may cover. I'm not saying a 20-year term is the smartest fiscal policy, but if I pay it off in my time instead of the bank's term time, it's well worth the lower rate.
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Apparently I missed where you intend to pay that 20 year loan off sooner. That strategy can work, but only for a disciplined borrower. The OP is looking for a 5 or 10 year loan. My comments were not so much directed at you as much as intended more as a wake up for forum readers who are shopping and vulnerable to this unfortunate RV sales tactic. (The ad says only $XXX per month!)
The idea of collecting more from insurance than the current value depends on two things. First is having that feature in your coverage. That is a great feature, yet it comes at a cost. Second, you must have a total loss, which happens but is rare. Suggest everyone get out their insurance policy and read it!
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