How Do You Finance An RV With A Home Equity Loan?
One of the advantages of homeownership is financial security. A home can be a retirement investment; you can also use it to pay off bills, access cash for home improvements, or even make large purchases, such as a recreational vehicle (RV). Home equity loans come in many forms. RVs are often quite expensive, and tapping the equity in your home can be an excellent way to finance one. Obtain a current copy of your credit report. Any financing you choose will be based on this report. You should also pay for a copy of your FICO score–a three-digit number between 300 and 850 that represents your creditworthiness. (See Resources for how to get a free copy of your credit report.) Excellent credit scores are those above 720; poor scores are below 600. Calculate your debt-to-income (DTI) ratio and loan-to-value (LTV) ratio. These two ratios are used by nearly all mortgage lenders to figure rates, payments and fees. To calculate your DTI, divide the sum of all monthly credit-reportable bills by
