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I'm going to be purchasing a flying Zenith soon and am looking for a reasonable rate on about $20,000 (paying cash for the balance) The first rate I was quoted was 7.35% - and my wife and I have great credit. Isn't there a better rate out there? I'm going to talk to my local banker but any suggestions would be appreciated.
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Does seem like a high APR, seems like if you have good credit and good debt/income ratio that even a private loan would be a much better option.
For aircraft loans, my Alaska USA Fed credit union loans begin at 6.25% if your credit rating is good enough, so yes, you may be able to do better.
Home equity rates (approx 2.3%) if you are in the position/willing to do so.
Oftentimes, a home equity loan will be at a much more competitive rate. Start there
With good credit and a stable income you may be able to get a $20k un-secured personal loan. No need to tell anyone what the money is for. That's what I did when I bought my kit. This may get you a lower rate, or at least not have someone hold a note on it.
For my 701, I was quoted 7.5% interest for a 10 year loan. Plus $875 origination fee.
I took out a personal loan for 5 years at 11%, which is a higher payment, but less interest in the long term. My credit union doesn't give loans for experimental aircraft, for certified aircraft it is around 6%.
I have used LightStream in the past. They are incredible! The process was very simple, no extra fees, you can pay off anytime, and they don't take a lien out on the aircraft. You can tell them it is for a boat, car, plane, whatever... they don't seem to care. It is all about your credit history/score. Good Luck!