Current loan rates

bflynn

bflynn

Final Approach
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Brian Flynn
Does anyone have resources for current aircraft loan rates? Probably 50-100k, but I can't find anyone that will talk rates and terms without giving out information and I'm still in planning phase.

If you have a source or can just let me know terms, I'd appreciate it.
 
bflynn said:
Does anyone have resources for current aircraft loan rates? Probably 50-100k, but I can't find anyone that will talk rates and terms without giving out information and I'm still in planning phase.

If you have a source or can just let me know terms, I'd appreciate it.
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I went through this about a year ago. Long story short, if you are borrowing less than $100k there will be a very tiny universe of lenders willing to loan against an aircraft, especially older ones or experimental/warbirds. Ironically, it gets easier as the amounts get larger. You are talking about a tiny industry relative to the home loan or auto loan industry. Basically, call the lenders and share enough info they can look at your credit rating and aircraft type, and they will give you some numbers. It sucks compared to other areas of finance. I wound up indirectly financing and ultimately just paid cash to avoid the headaches.
 
I got a quote over the summer. 15-20% down, 5.5%, on a 15 year term. There is $600 in closing/appraisal and a $300 title search as well. The email was dated July 2022.

--Matt
 
Avemco has an online calculator with approximate rates.

What info do they want that you don't want to give out?

Anyway, call Dorr Aviation.
 
The rogue said:
I got a quote over the summer. 15-20% down, 5.5%, on a 15 year term. There is $600 in closing/appraisal and a $300 title search as well. The email was dated July 2022.

--Matt
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Rates went up in July. I had to close on a plane or my rate would have jumped almost 1%.
 
I reached out through the aopa links and was able to get this kind of info without credit checks or anything. It’s worth sending the email.
 
Newspaper this morning reported first mortgage rates on a single family home at over 6%. Wow!

-Skip
 
TomF said:
I reached out through the aopa links and was able to get this kind of info without credit checks or anything. It’s worth sending the email.
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Is it worth getting onto someone’s sales email list? I don’t like emailing to ask for information because inevitably I wind up getting spam email asking me to take out a loan with them.
 
Got quoted 4.5% for 15 years yesterday by AOPA. My business bank wants 6.25%

That's 20% down, $300,000
 
cowtowner said:
Got quoted 4.5% for 15 years yesterday by AOPA. My business bank wants 6.25%

That's 20% down, $300,000
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20% on 300, or the 20% down is 300k?

4.5% is cheap money, i wonder is AOPA or who ever their underwriter is just collateralizes the loan and a CLO fund picks it up?
 
Skip Miller said:
Newspaper this morning reported first mortgage rates on a single family home at over 6%. Wow!

-Skip
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Really? Six whole percent?

My first mortgage was a VA, at 12.5%. We were fortunate to have good credit. Some of my squadron mates were in the 14% range.

20% CD rates were not unheard of.

Coming soon to a neighborhood near you.
 
orca64 said:
Really? Six whole percent?

My first mortgage was a VA, at 12.5%. We were fortunate to have good credit. Some of my squadron mates were in the 14% range.

20% CD rates were not unheard of.

Coming soon to a neighborhood near you.
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Yep - our first house had a 30 year fixed at 10.25 - and that was MUCH better than what it was only few years prior.

Year Average 30-Year Rate
1982 16.04%
1983 13.24%
1984 13.88%
1985 12.43%

It was so bad people were taking out Variable interest loans. In essence, getting a lower rate by taking on a large amount of risk that the interest rates would not go higher. Because if they did their payments would go up, perhaps beyond what they could afford.
 
I just locked up a 200K loan/322K purchase price, 15yr, 4.5%, yr 2000 a/c. Through Currency. Paid cash to close the deal on time and will close the loan as a cash out refi (sort of).
 
WDD said:
Yep - our first house had a 30 year fixed at 10.25 - and that was MUCH better than what it was only few years prior.
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Our first WAS a few years prior. 13.5% VA loan for 30 years. A few years later we moved and were thrilled to get the new loan at 10.5%.

The last one we did was a 2.875 ARM refi that then dropped to 2.5 before heading back slightly higher. We’ve had a run of incredibly low interest rates that is rapidly drawing to a close.
 
DaleB said:
Our first WAS a few years prior. 13.5% VA loan for 30 years. A few years later we moved and were thrilled to get the new loan at 10.5%.

The last one we did was a 2.875 ARM refi that then dropped to 2.5 before heading back slightly higher. We’ve had a run of incredibly low interest rates that is rapidly drawing to a close.
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Same here. Bought in 1984 and was happy with only 13.5%

I refied a year and a half ago at 2.125%. I figured inflation would be higher than that, and I would being paid to take thr mortgage.
 
robin ardoin said:
I just locked up a 200K loan/322K purchase price, 15yr, 4.5%, yr 2000 a/c. Through Currency. Paid cash to close the deal on time and will close the loan as a cash out refi (sort of).
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I went through that to. Have a house I paid cash for. About 10 years later got a loan on it. The first loan ever on it. But they call it a refi and give the refi rate, which is a half a point higher than new purchase rate. I tried to educate them about how it wasn’t a refi. They in turn educated me on what it was going to be if I wanted the money.
 
WDD said:
Yep - our first house had a 30 year fixed at 10.25 - and that was MUCH better than what it was only few years prior.

Year Average 30-Year Rate
1982 16.04%
1983 13.24%
1984 13.88%
1985 12.43%

It was so bad people were taking out Variable interest loans. In essence, getting a lower rate by taking on a large amount of risk that the interest rates would not go higher. Because if they did their payments would go up, perhaps beyond what they could afford.
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I bought in 81 during the insanity. I’m remembering rates in the 17’s. Seller took a Note and a Trust Deed for 12%. Amortized at 30 years but Due and Payable in 5 years. Balloon Payment. Owner Financing was very common then. A cottage industry grew out of people buying Trust Deeds for Cents on the Dollar. Lots of sellers would do it because they wanted Cash now.
 
Expect another interest increase here soon as the fed tries to curtain inflation.
 
bflynn said:
Does anyone have resources for current aircraft loan rates? Probably 50-100k, but I can't find anyone that will talk rates and terms without giving out information and I'm still in planning phase.

If you have a source or can just let me know terms, I'd appreciate it.
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Expect a 15% down requirement
 
bflynn said:
Does anyone have resources for current aircraft loan rates? Probably 50-100k, but I can't find anyone that will talk rates and terms without giving out information and I'm still in planning phase.

If you have a source or can just let me know terms, I'd appreciate it.
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Give Kathy Mayotte = Currency Aviation Financing = a call 959.444.0625. She is out of the office until Monday but was very helpful and pinned down a great rate for $225K on a $322K purchase/ 15yr / 4.5%. I missed the really good rates by a half dozen months or so. Still better than the 17.8% rate on my first home back in the late ‘80’s.
 
Whatever the rates were when the OP started this thread a week ago, they're higher now.
 
I financed a 150 Cessna ,got the loan through AOPA site. 7.49% no hassle no paperwork. 15% down. Loan was below 50 k.
 
frfly172 said:
I financed a 150 Cessna ,got the loan through AOPA site. 7.49% no hassle no paperwork. 15% down. Loan was below 50 k.
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When was this? That is 3% higher than the loan on my Mooney, that closed on July 7.
 
July was at least two rate hikes ago
 
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Be prepared for aircraft prices to come down. Obviously cash is king and we here in the states love to finance things so I do think there will be an increase in supply but decrease demand.
 
The one thing coming down faster than airplane prices is my bank account I would have used to pay for a plane. How far has the s&p dropped??

yikes
 
As noted, loans for older, "inexpensive" aircraft are not particularly easy to come by. Rates are high, the application process sucks, full of fees, and it's just a painful experience.

In the $50-100k range, you'll save yourself a LOT of trouble by going to Lightstream. Rates may be a point or two higher, but it's an unsecured loan, no prepayment penalties, etc. Application take 5-10min, nearly instant approval and money in your bank account next day. Now you're a cash buyer.
 
For some comparison, at 2.9% rate on a 30yr mortgage for a $600k house, that monthly payment is equivalent to a 30yr mortgage at 6.1% for a $392k house. That's 2/3 of the previous buying power. There will be some adjustments on things which must be financed.
 
bradg33 said:
As noted, loans for older, "inexpensive" aircraft are not particularly easy to come by. Rates are high, the application process sucks, full of fees, and it's just a painful experience.

In the $50-100k range, you'll save yourself a LOT of trouble by going to Lightstream. Rates may be a point or two higher, but it's an unsecured loan, no prepayment penalties, etc. Application take 5-10min, nearly instant approval and money in your bank account next day. Now you're a cash buyer.
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Brad, I went and looked, seems like a great setup. Before someone goes through the loan process, do you know if it is unsecured or does Lightstream need to be on the AC title?
 
MIFlyer said:
Brad, I went and looked, seems like a great setup. Before someone goes through the loan process, do you know if it is unsecured or does Lightstream need to be on the AC title?
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Totally unsecured. They don't even ever ask what you want to buy or what you bought. Requires excellent credit, of course. I've used them a few times, very happy with the process before and after.
 
bradg33 said:
Totally unsecured. They don't even ever ask what you want to buy or what you bought. Requires excellent credit, of course. I've used them a few times, very happy with the process before and after.
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sweet... I feel a trip to the casino. LOL.

No, good to know though for options. This is seriously better than an AC loan IMO, and you could always just pay it off if the interest rate isn't favorable.
 
Data: LightStream did an overnight approval for an EAB, $70k at 7% for 10 years, 80% LTV
 
This economy is tanking like its the late 70s. The strategic oil reserve release is going to end at the end of October, I wonder why that date was picked? Anyway oil prices will go up, especially if it's a cold winter, then things will really spiral. Time to hunker down.....
 
PaulS said:
...I wonder why that date was picked?...
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There's the obvious answer, and then there's also the fact the reserve is now at a 40 year low so the current draw down is unsustainable. I hope you're wrong about the economy. I've been watching too many financial shows of late and tend to agree. However, fear sells so it's also possible the shows are not painting a complete picture.
 
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