Is it Worth Attempting to Refinance?

17th March 2017

By Adam Meredith

Adam answers in April’s edition.

Question: I currently have an aircraft loan at 5.25% and owe approximately $79,000. Is it worth attempting to refinance? What interest rate may I expect? Should I approach the current lien holder bank first? Should I approach a different bank?

Answer: Depending on the age and type of aircraft, we have options as low as 4.80% fixed for 20 years. We also offer adjustable rates and balloon structures for loans over $75,000. Rates on these products can be as low as 4.25%.

Rates are on the rise, however, it is never a bad idea to contact your current lender. If they are not able to offer better than your current loan structure, let AOPA Aviation Finance handle approaching different banks for you. We work with a dozen different lenders, many of which are not accessible without going through a broker such as us. This allows us to provide you with the most competitive and flexible loan structures in the market.

Question: I had to file Chapter 13 bankruptcy in 2010, but have successfully completed the bankruptcy program in the end of 2015. With my salary over $200,000, I would like to pursue aircraft ownership again as I previously owned and had successful loans on six aircraft over the years and none were involved in the filing. I have no other debts other than a new home and am looking for a loan in the $55,000-$65,000 range. Is this possible?

Answer: A bankruptcy discharged as recently as 2015 will be a challenge for any lender. Most aircraft lenders will not consider borrowers who have filed bankruptcy. The few lenders that can consider bankruptcies want to see recovered credit, preferably over 700, and installment loan history since the bankruptcy. Being approved for a recent mortgage is a positive. With strong income and growing credit, it’s possible we would have a lender that could consider this situation.

Have questions for Adam? He is happy to answer them. Submit your questions here.

Great rates. Great terms. Helpful and responsive reps. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (75263) or click here to request a quote.

Have a specific aviation finance question you would like to see in future articles? Submit it here, and it may be highlighted in an upcoming content piece.

AOPA Finance Team

Knowledgeable and friendly aircraft finance professionals you can trust to find the best terms for your financing needs. Our goal is to make aircraft ownership more affordable and accessible to pilots.

AOPA Products and Services Fly Wise Finance