Aircraft Loans

Tbrown · Post by **Tbrown** » Wed Jan 08, 2003 2:12 am

I'm in the process of buying a 170. Does anyone know of a good place to get a loan? Some banks I've talked to seem a little prejudice towards our older birds.
Thanks
Troy

N1478D · Post by **N1478D** » Wed Jan 08, 2003 2:31 am

Where do you live at?

N170BP · Post by **N170BP** » Wed Jan 08, 2003 5:46 am

Do you own a home? 2nd mortgages and/or equity loans are
dirt-cheap right now.... I don't think any "airplane loan" program
can touch the low rates of the 2nd mortgage/equity loans....

Good luck with your purchase plans.

Bela P. Havasreti
'54 C-170B N170BP

zero.one.victor · Post by **zero.one.victor** » Wed Jan 08, 2003 6:40 am

Don't forget,with a home loan/mortgage you can write the interest off on your federal taxes. I don't think interest paid on any other type of loan is deductible anymore.
You can borrow enough to cover not just the price of the plane,but also the pre-buy inspection and the first year's insurance.

Eric

eichenberger · Post by **eichenberger** » Wed Jan 08, 2003 2:24 pm

Troy - In what state do you reside?

Joe Gibbs · Post by **Joe Gibbs** » Wed Jan 08, 2003 9:17 pm

Troy,
Do you belong to AOPA? IF so you could try through them or through Textron.Got mine with Textron with very little hassle:D.
Joe........

Tbrown · Post by **Tbrown** » Fri Jan 10, 2003 3:26 am

Hey Guys,
Thanks for all the replys. I live in Fort Mill SC on the state line near Charlotte NC. I've recently sold my house so thats out. It would be nice to have the loan unsecured. I've been trying to get a personal line of credit but the payment gets astronomical quick. It's structured like a credit card. I'm trying to get a balloon note amortorized out to 10 years but banks don't like to stray too far from the routine. This way I could put it on a second mortgage when my house is built. Thanks again for the idea's
Troy

wa4jr · Post by **wa4jr** » Fri Jan 10, 2003 3:57 pm

I financed my '54 170B through the loan program offered by AOPA. I am quite happy although I may have been better off going the 2nd mortgage route when considering interest deductions. Volunteering my ship for AngelFlight or CAP work may earn the tax writeoff though. I had no problem with the loan application work from AOPA...went smoothly and quickly. I like the 20 year payoff period...keeps the monthly obligation low just in case resources are needed elsewhere...and I can double up on the payments with no penalty. You get free AOPA membership for the life of the loan as well.

Tbrown · Post by **Tbrown** » Sat Jan 11, 2003 3:58 am

John, I checked with AOPA (8.29%) and they were about 1% higher than U.S. Aviation Finance (7.25%) who has been the lowest so far. This made the payment about $25-$35 higher. AOPA had no closing cost where as U.S aviation charged $300. AOPA also pays your annual dues for AOPA. The only problem with both is the minimum loan is $25,000 or, for AOPA the interest rate jumps to 10.25%... still shopping.
Thanks, Troy