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Is it Worth Attempting to Refinance?

Adam Answers

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.  
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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.
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Adam Meredith

Adam Meredith

President of AOPA Aviation Finance Company
Adam Meredith, President of AOPA Aviation Finance Company, is an aircraft finance professional with more than 15 years lending, small business management and customer service experience. Adam is a commercial pilot with multi-engine and instrument ratings.
Topics: AOPA Aviation Finance Co, AOPA Products and Services

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