Page 27: of Marine News Magazine (September 2014)

ports, make seasonal payments a part of your original loan request and get them approved by your lender. REFINANCEShould none of the aforementioned payment options be attractive to you, and you have satisfactorily serviced your debt to this point, you might consider reÞ nancing the vessel. If you are halfway through your term, letÕs say the Þ fth year of a ten year loan, you have paid off about 60% of your loan principal. You can cut your monthly payments substantially by reÞ nancing the remaining principal (plus take out some equity) for anoth-er ten year term. Given market rates at this time, your interest rate will prob- ably be less than when you entered into the loan further dropping your monthly payment. Inasmuch as your vessel may have appreciated over the past Þ ve years, your equity in the ves- sel may actually have increased giving you the ability to increase the princi- pal amount should you choose to. If you have historically paid as agreed and your credit is in good shape, there is no better time than now to consider reÞ nancing your loan and incorporat- ing skip or seasonal payments as part of the package. But as with anything Þ nancial or legal, consult with your Þ nancial advisor and legal counsel be- fore making any decisions. Richard J. Paine, Sr. is the National Marine Sales Manager for Signature Financial LLC. He can be reached at [email protected] www.marinelink.com MN Sept14 Layout 18-31.indd 27MN Sept14 Layout 18-31.indd 278/20/2014 11:43:58 AM8/20/2014 11:43:58 AM