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RV Refinancing: Everything You Need to Know

RV Refinancing: Everything You Need to Know
Susan Guillory
Susan GuilloryUpdated March 1, 2023
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Traveling in an RV (recreational vehicle) is a great way to see the country. It allows you to stop wherever and whenever you like, and you never have to search for a hotel room or a restaurant. While there are many advantages to owning an RV, it can be expensive. If you bought your RV with a loan and you want to save on the interest you’re paying or lower your monthly payment, RV refinancing may be a great option for you. Here’s what it’s important to know about refinancing—plus how to find the best deal.Recommended: Types of RV Exterior Upgrades

How Does RV Refinancing Work?

Just like there are various types of car loans, there are different types of RV loans, including RV loan refinancing.When you refinance an RV loan, you’re taking out a second loan to pay off the first loan. Ideally, the second loan will have lower interest so you can save money over the term of the new loan. Alternatively, you could extend the repayment period of the new loan to lower your monthly payments.You make monthly payments on the refinanced loan until it’s paid off. However, if you are unable to make the payments your RV could be taken by the lender, since it is collateral for the loan.Recommended: Cheap RV Bedroom Remodel

RV Refinancing Terms 

If you’re interested in an RV loan refinance because you want to lower your monthly payment, you can look for a loan with extended terms. Some RV refinancing terms can be as long as 20 years, especially if you’re refinancing a loan of $50,000 or more.You can find RV refinance loans for as little as $5,000 and as much as $100,000 with low rates. Be aware you may be required to pay a processing fee for the RV loan.

RV Refinancing Interest Rates 

RV loan refinance interest rates depend on several things, including the lender you use and your creditworthiness. If you have great credit, you’ll likely be able to get a lower interest rate. If you have bad credit, your rate may be higher. There are RV refinance loans with rates that range from 4.49% to 9.99% for those that qualify.Check out this guide to auto loan terms explained to learn more about loan terms and interest rates for vehicles.

RV Refinancing Credit Score

Similar to car loan requirements, there are criteria to qualify for RV refinancing, including your credit score. Some lenders may require credit scores as high as 680. Others might not lend to you if you have a bankruptcy on your record or bad credit. Still other lenders may lend to you with bad credit, but you’ll pay a higher interest rate.

RV Refinancing Costs 

In addition to the interest you’ll pay on a refinancing loan, there may be other fees involved. These include administration fees and origination fees. They may be a flat rate or a percentage of the loan value.Recommended: Budget-Friendly RV Kitchen Remodel

RV Refinancing Tips

Financing an RV, or refinancing one, is a lot like applying for an auto loan. Here are tips for finding a deal that can save you money.

Weighing Your Options

Start by shopping around for the best rate you can qualify for. Often you can get preapproved. Avoid doing this with too many lenders, however, or it may adversely impact your credit score.Start with your bank to refinance your RV loan. Also look into online lenders, which may be more flexible in their criteria to qualify for refinancing. And check with the company you have your current RV loan with to see what refinancing options they offer.If you want a lower monthly payment, shop for a loan that offers a longer repayment period. Just be aware that you may pay more in interest over the life of the loan with a longer term.

Knowing Your Budget 

Just like with auto loan shopping, you need to understand your budget when refinancing an RV. Start your loan search by knowing what you’re paying for your existing RV loan, including interest rate and monthly payment. If you want a lower interest rate, only consider loans that offer less than what you’re paying. If you prefer to lower your monthly payment, look for a longer loan term than the one you’ve got. 

Getting a Deal

RV loans may vary wildly in their interest rate and terms, so spend plenty of time exploring the options. If you have questions, call and speak to the lender. In addition to saving money, you also want to work with a lender who is responsive and available and has good customer service.Recommended: Tips for Traveling on a Budget

RV Refinancing Benefits 

Refinancing RV vehicles offers perks. The first is that you may be able to refinance the loan at a lower rate than you are currently paying. Interest rates fluctuate over time, as can your financial situation. For instance, your credit score may be higher now than it was when you got your first RV loan, and you may qualify for a lower interest rate.A second benefit is reducing your monthly payment. If your first RV loan payment is weighing you down, refinancing could let you extend the number of years you have to repay the loan, which will lower your monthly payment. 

Explore Refinancing Options

Refinancing an RV will take a little time and research as you investigate your options, but it can be well worth it by saving you money on interest or lowering your monthly payment.Lantern by SoFi can simplify the process. With our easy online comparison tool, you can quickly explore different loan options for RV auto refinancing and find the best fit for your needs.

Frequently Asked Questions

Is there financing available for RVs?
What credit score is required for RV refinancing?
Photo credit: iStock/Bill Oxford

About the Author

Susan Guillory

Susan Guillory

Su Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
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