Understanding RV Loans
RV loans are specialized financing options for recreational vehicles including motorhomes, travel trailers, fifth-wheels, and toy haulers. These loans typically have longer terms and different qualification criteria than auto loans due to the unique nature of RV ownership.
RV Loan Features
- Longer Terms: Up to 20 years for RV financing
- Higher Interest Rates: Typically 0.5-1% higher than auto loans
- Larger Down Payments: Often 15-25% required
- Seasonal Usage: Affects payment affordability
- Depreciation: RVs depreciate but can hold value differently than cars
RV Loan Requirements
- Credit Score: 650+ typically required
- Debt-to-Income Ratio: Below 45% preferred
- Down Payment: 15-25% of purchase price
- Proof of Insurance: RV insurance required
- Appraisal: May be required for higher-value RVs
Current RV Loan Rates (2025)
| Credit Score | Interest Rate Range | APR Range | Loan-to-Value |
|---|---|---|---|
| Excellent (740+) | 6.5% - 8.5% | 7.0% - 9.0% | 85-95% |
| Good (670-739) | 8.5% - 10.5% | 9.0% - 11.0% | 80-90% |
| Fair (580-669) | 10.5% - 12.5% | 11.0% - 13.0% | 75-85% |
RV Loan Terms by Type
| RV Type | Typical Term | Down Payment | Max LTV |
|---|---|---|---|
| Travel Trailer | 7-15 years | 15-20% | 90% |
| Fifth Wheel | 10-15 years | 15-25% | 85% |
| Motorhome | 10-20 years | 20-25% | 80% |
Additional RV Ownership Costs
- RV Insurance: 1.5-2.5% of RV value annually
- Registration & Licensing: $200-800 annually
- Storage & Maintenance: $50-200 monthly
- Fuel Costs: $800-2,000 annually (motorhomes)
- Campground Fees: $30-80 per night
- Repairs & Upgrades: $500-2,000 annually
RV Loan Lenders
- RV Dealerships: Convenient financing options
- Online Lenders: Competitive rates, fast approval
- Credit Unions: Often offer best rates for members
- Banks: Traditional lending with solid terms
- Specialized RV Lenders: Focus on RV financing expertise
RV Financing Tips
- Consider Usage: Full-time vs seasonal RVing
- Factor in Depreciation: RVs hold value differently by segment and condition
- Check Resale Value: Some RVs can retain value better than expected
- Consider Trade-in Value: Many buyers have RVs to trade
- Look for Warranties: Extended warranties can add value
- Calculate Total Cost: Include all ownership expenses
Tip: RV ownership offers great lifestyle benefits but comes with significant costs beyond the loan payment. Consider insurance, storage, maintenance, fuel, and campground fees when determining affordability.
How to Use the RV Loan Calculator
This RV loan calculator is designed for common retail scenarios and helps you estimate the monthly payment, total interest, and total of payments for different terms. Enter the required fields and adjust options to compare offers:
- RV Price: Sticker price or negotiated selling price before credits.
- Down Payment: Cash you will pay at signing. Larger down payments reduce the financed principal.
- Trade-in Value: Value of an RV or vehicle you are trading in. If the payoff exceeds value, include only the equity portion you’re applying; do not include negative equity here.
- Interest Rate (APR): The annual percentage rate offered by the lender. Use APR when available; it’s more comparable than a simple note rate.
- Loan Term: Choose between 84, 120, 180, or 240 months. Longer terms lower the payment but increase total interest.
- Origination Fee (%): Percentage charged by some lenders; financed into the loan in this calculator.
- Other Fees ($): Financeable fees like documentation or title; sales taxes vary by location—if you are financing tax, include it here.
Click Calculate to see the monthly payment, total of payments, total interest, and a first-month interest/principal split. Use the comparison tiles to preview how a different term changes the payment and lifetime interest.
RV Loan Payment Formula
Payment = P × r × (1 + r)n ÷ ((1 + r)n - 1)
- P = financed principal (price - down payment - trade-in + financed fees)
- r = monthly rate (APR ÷ 12)
- n = total number of payments (months)
For a 0% APR offer, the payment is simply P ÷ n. This calculator uses the same amortization math lenders use for fully amortizing installment loans.
RV Loan Examples
These examples illustrate how down payment, APR, and term change affordability and total cost. Numbers are rounded to the nearest dollar for readability.
Travel Trailer — $45,000 at 8.2% for 120 Months
- Down payment: 15% ($6,750); Trade-in: $0
- Origination: 1%; Other fees: $500; Financed principal ˜ $39,133
- Estimated payment ˜ $480/mo; Total of payments ˜ $57,600; Total interest ˜ $18,468
A modest down payment and 10-year term keeps the payment manageable while avoiding the higher interest cost of 15 years.
Class A Motorhome — $120,000 at 8.9% for 180 Months
- Down payment: 25% ($30,000); Financed principal after fees ˜ $91,900
- Estimated payment ˜ $930/mo; Total of payments ˜ $166,900; Total interest ˜ $74,900
The longer 15-year term reduces the monthly burden on a high-ticket RV, but total interest rises substantially. Compare against a 120-month offer to balance payment and lifetime cost.
Used Fifth-Wheel — $35,000 at 9.5% for 84 Months
- Down payment: 20% ($7,000); Financed principal after fees ˜ $28,780
- Estimated payment ˜ $470/mo; Total of payments ˜ $39,480; Total interest ˜ $10,700
Shorter terms on used RVs often keep lifetime interest in check even if APRs are higher than for new RV financing.
What Affects RV Loan Rates in 2025
- Credit tier: Higher FICO scores unlock the lowest APRs; utilization and recent inquiries also matter.
- LTV (loan-to-value): Lower LTVs from larger down payments or strong trade-in equity reduce risk and may lower APR.
- DTI (debt-to-income): Lower DTI improves approval odds and pricing.
- RV type and age: Motorhomes and older units can price higher or cap maximum LTV and term.
- Term length: Ultra-long terms can carry higher APR even if payment is lower.
- New vs. used: Used RV financing often has slightly higher APRs and shorter maximum terms.
- Loan size: Very small or very large balances may have unique pricing tiers.
- Market conditions: Benchmark rates and lender funding costs shift pricing across the board.
Down Payment and LTV Strategy
Your down payment directly lowers LTV and the financed principal. A 20–25% down payment is common for RVs. If you can comfortably put more down, run the calculator to see how every extra $1,000 reduces monthly payment and lifetime interest. If you have a trade-in, get independent valuations (e.g., NADA Guides) to ensure you capture fair equity.
- Target LTV at or below lender max for your RV type to qualify for best tiers.
- Avoid financing discretionary add-ons that don’t meaningfully improve value retention.
- Use cash for taxes and registration when possible to keep interest down.
84 vs 120 vs 180 vs 240 Months
Longer terms smooth cash flow but increase total interest. Use the comparison outputs to quantify the trade-off. Many buyers land between 120 and 180 months depending on RV price, credit tier, and usage plans. If your goal is lowest lifetime cost, consider a shorter term plus optional extra principal payments in high-income months.
Fees and Taxes
“TT&L” (tax, title, and license) varies by state or province. Some regions tax the sale price minus trade-in; others tax payments; some cap documentation fees. This calculator lets you finance fees by entering them as Other Fees. If you pay fees out-of-pocket, do not include them; your financed principal will be lower and interest will decrease.
Insurance, Gap, and Warranties
- Insurance: Premiums depend on RV type, value, location, and usage (occasional vs full-time). Shop insurers that specialize in RV coverage.
- Gap coverage: May be useful if your LTV is high; compare dealer-sold gap against your insurer’s price.
- Extended warranties: Consider only if priced competitively and backed by reputable providers; avoid financing high-margin add-ons.
Pre-Approval and Shopping Lenders
Compare offers from credit unions, banks, specialized RV lenders, and dealer-arranged financing. A pre-approval can strengthen your negotiating position and set realistic expectations.
- Request quotes with identical terms (same APR basis, fees, and months) for apples-to-apples comparison.
- Ask whether the quote is a soft pull or hard inquiry and when a hard pull occurs.
- Confirm whether there are prepayment penalties or restrictions on extra principal payments.
New vs. Used RV Financing
Used RVs often have higher APRs and shorter max terms. Lenders may limit financing on older units or set condition and inspection requirements. If you’re buying a vintage or specialty RV, confirm lender age limits before negotiating.
Full-Time RVing Considerations
Declaring full-time use can change underwriting, insurance, and warranty terms. Lenders and insurers may price differently due to higher exposure. Budget for storage or campground costs, mail forwarding, and domicile requirements if applicable.
Extra Payments and Early Payoff
Even small extra principal payments early in the term can shave months off your payoff and lower total interest. Verify your note does not include prepayment penalties and that extra payments are applied directly to principal.
- Round up to the next $25–$50 each month.
- Make one additional full payment per year if cash flow allows.
- Direct windfalls (tax refunds, bonuses) to principal to maximize impact.
When to Refinance an RV Loan
Refinancing can reduce rate, payment, or both if market APRs fall or your credit improves. Compare the total cost of your remaining schedule to a new loan that includes any fees. Avoid extending the term so far that total interest increases unless payment relief is the top priority.
Negotiation Checklist
- Start with the out-the-door price; separate the RV price from financing.
- Decline add-ons you don’t value; never let add-ons creep into price unknowingly.
- Get written quotes listing APR, term, payment, financed amount, and all fees.
- Use pre-approval as leverage to beat or match rates.
Case Studies
Longer Term vs. Shorter Term
A buyer choosing between 120 and 180 months saw a $160/month payment difference, but total interest over 15 years was $13,000 higher. Opting for 120 months and making occasional extra principal payments delivered similar flexibility with much lower lifetime cost.
Credit Improvement Then Refi
After paying down revolving balances and seasoning the loan for 9 months, the borrower’s score rose two tiers. Refinancing dropped APR by 1.4%, saving ~$7,800 over the remaining term while keeping the payment nearly unchanged.
Trade-In Equity Strategy
Securing independent valuations prevented under-allowance on a trade-in, improving LTV and qualifying the buyer for a better rate tier. The payment and total interest both declined compared to the dealer’s initial worksheet.
RV Loan FAQs
Is APR the same as interest rate?
How big should my down payment be?
Do longer terms always cost more?
Can I finance taxes and fees?
What’s a good RV loan rate in 2025?
Will extra payments reduce my next month’s payment?
Are there prepayment penalties?
Glossary
- APR: Annual percentage rate, inclusive of certain finance charges.
- LTV: Loan-to-value ratio, the financed amount relative to appraised or book value.
- DTI: Debt-to-income ratio, total monthly obligations divided by gross income.
- Amortization: Scheduled repayment of principal and interest over time.
- Origination Fee: Lender charge often expressed as a percentage of the loan.
- TT&L: Taxes, title, and license fees due at purchase.
- Prepayment Penalty: A fee charged for paying the loan off early.
Documentation Checklist
- Government-issued ID and proof of residence
- Recent pay stubs or proof of income (e.g., 2–3 months)
- Bank statements and list of monthly obligations
- Insurance binder or quote for the RV
- Purchase agreement with VIN/model details
- Trade-in title and payoff letter (if applicable)
Rate Buydowns and Points
Some lenders allow you to pay an upfront fee to reduce APR (“points”). Compare the present cost of points to the interest saved across the period you expect to hold the loan. If you plan to sell or refinance early, points rarely pay off.
Balloon vs. Fully Amortizing Loans
A balloon note has a lump-sum payoff at the end; monthly payments are lower but a large balance remains. The calculator assumes fully amortizing loans with no balloon. If offered a balloon, estimate the future payoff and your plan to refinance or sell before maturity.
Credit Union vs. Bank vs. Dealer vs. Online Lender
- Credit unions: Often strongest for member pricing and personalized underwriting.
- Banks: Broad availability and bundled banking benefits.
- Dealer arranged: Convenience and occasional promotional terms; scrutinize add-ons.
- Online/specialty lenders: Quick decisions and RV expertise; compare fees carefully.
Seasonality and Timing
Inventory cycles and local demand can influence pricing. Off-season shopping may improve negotiating leverage; lenders’ rate sheets also move with market conditions. Use pre-approval to lock a rate where possible and re-price before closing if rates drop.
Depreciation and Resale
Value retention varies by RV segment, brand, floorplan, and condition. Research recent sale comps and book values to avoid overpaying and to set realistic expectations for equity at different time horizons.
Ownership Budget Template
- Loan payment (from this calculator)
- Insurance (quote for your usage)
- Storage (outdoor vs indoor)
- Maintenance & repairs (reserve fund)
- Registration & taxes (annualized)
- Fuel & camping (miles, nights)
- Misc. (accessories, connectivity, cleaning)
Common Mistakes to Avoid
- Focusing only on payment and ignoring total interest
- Financing non-essential add-ons at high APRs
- Underestimating storage, insurance, and maintenance costs
- Skipping independent trade-in valuations
- Taking a balloon without a clear exit plan
Further Reading
Deepen your research with trustworthy primers: APR explained (Investopedia) and RV values (NADA Guides).