Understanding RV Loans: Financing and Refinancing Your Dream Adventures

Embarking on exciting adventures and exploring the great outdoors in an RV (recreational vehicle) has become a popular choice for both independent explorers and families. However, purchasing an RV requires a significant investment. Below, we will cover the basics of RV loans, shedding light on what they are, how they work, and what you should consider before applying for one.  We will explore RV refinancing as an option to optimize your RV loan.


rv loan

What is an RV Loan?

An RV loan is financing designed for purchasing a recreational vehicle. Similar to a car loan, an RV loan allows you to borrow the necessary funds to purchase an RV and pay it back over time through regular monthly installments. This financial assistance can make owning an RV more accessible and affordable, allowing you to enjoy the freedom and flexibility of the open road without having to pay the full cost upfront.

rv financing

How Does RV Financing Work?


Various lenders offer RV financing, including banks, credit unions, and specialized RV financing companies. Each lender may have different eligibility criteria, interest rates, and loan terms.


An RV loan may require a down payment. This upfront payment reduces the total amount you need to borrow and shows the lender your commitment to the purchase. Required down payments can range from 0% to 25+% of the RV's purchase price. The higher the down payment, the lower your loan amount and monthly payments will be.


RV loans can have terms ranging from twenty-four to two hundred forty months. Loan term options may vary. Not all borrowers will qualify for the same term options. The loan term determines the length of time you have to repay the loan in full. While a longer loan term may result in lower monthly payments, it also means paying more in interest over the life of the loan. Consider how long you plan to use the RV to choose the most suitable loan term.


Annual percentage rates for RV loans can vary based on factors such as your credit score, loan term, down payment amount, the loan to value ratio of the RV, and other lender policies.  If you already have an RV loan and want to see if you qualify for a lower rate, you can apply to refinance your RV loan. With Ironhorse Funding’s RV refinancing application, you can see if you prequalify and check your rate with no impact to your credit score.


If you’re looking to refinance an existing RV loan, you'll need to submit a complete loan application and provide the necessary documentation. The required documentation can vary, so ask your loan specialist upfront about what documents you may need to provide. If your loan application is approved, you'll go through a closing process where you'll review and sign the loan documents.  While refinancing an RV loan, your current loan will be paid off and you’ll have a new loan.

apply for an rv loan

Considerations Before Applying for an RV Loan

Before diving into an RV loan agreement, here are a few important factors to consider:


Evaluate your financial situation and determine how much you can comfortably afford to spend on an RV and its associated expenses, including insurance, maintenance, storage, and fuel costs each month.


A good credit score may help you secure a lower rate, so it's wise to check your credit report beforehand and take steps to improve your score if necessary. Find out how to get a copy of your free credit report.


Besides the loan payments, factor in other expenses such as insurance, maintenance, storage fees, and campground costs (link to Highest Rated RV Resorts by state blog post). Assessing the overall cost of RV ownership will give you a clearer picture of your long-term financial commitment.


Research the potential resale value of the RV, travel trailer, 5th wheel or motorhome you plan to purchase. Understanding how depreciation affects the value of the RV over time can help you make a more informed decision and potentially save you money in the future.

RV Refinancing

RV Refinancing: Optimizing Your RV Loans

RV refinancing through Ironhorse Funding can be a valuable option to make your RV loan better fit your budget. Refinancing an RV loan replaces your existing loan with a new loan that may offer you better terms such as a lower rate or an extended loan term. Here are a few key points to consider about RV refinancing:


Over time, interest rates may change, and you may find yourself eligible for a lower rate than when you initially purchased your RV. Refinancing your RV loan can help you take advantage of these lower rates, potentially reducing your monthly payments and overall interest costs.


If you've been diligently working on improving your credit score since purchasing your RV, you may be eligible for better loan terms. A higher credit score can result in a lower interest rate, which could save you money over the life of the loan.


Refinancing your RV loan could allow you to extend the loan term, giving you more time to repay the loan.


Refinancing allows you to switch lenders for more favorable terms or customer service. If you’ve financed an RV through another lender, apply to refinance your loan through Ironhorse Funding. If you prequalify you can see the rate and terms that you may qualify for. There is no impact to your credit score to get prequalified through Ironhorse Funding.


An RV loan is a valuable tool that provides the necessary funds to purchase an RV and allows you to pay it off over time through manageable monthly installments. By understanding the key aspects of an RV loan, including down payments, loan term, interest rates, and loan approval processes, you can make an informed decision about your next RV loan.

Refinancing your current RV loan through Ironhorse Funding may be an effective way to optimize your loan terms, potentially saving you money and improving your overall financial situation. By taking advantage of lower interest rates, an improved credit score, or extended loan term, refinancing may help you better manage your RV loan.

Remember to carefully consider your budget, credit score, and the total cost of RV ownership before applying for an RV loan. By doing so, you can ensure a smoother and more enjoyable journey as you hit the open road and create memories in your very own RV.