Fixed-Rate or Adjustable-Rate?

Adam Answers

Adam answers in July's edition. 

Question: Should I choose a fixed-rate or an adjustable-rate when financing my Cirrus SR 22?

Answer: The answer really depends on how long you intend to keep the loan. If your intention is to have the aircraft financed for a long-term, a fixed rate option would be best. If you expect to only need financing for 3-5 years, an adjustable rate structure would provide some interest savings since they typically offer lower rates than standard fixed rate structures. Call us to discuss aircraft financing. We work with over a dozen different lenders and will make sure to match you with the lender that meets your individual needs.

Question: What is typically included in closing costs and how much should I expect them to be? Currently, I’m looking to finance a Cessna 182 and want to determine total costs of financing.

Answer: Closing costs are the real costs incurred by the lender to document the loan. These typically include fees associated with preparing and mailing the loan documents, credit/background checks, and, in some cases, title and escrow. Most of our lenders’ closing costs run between $500-$800 for a C182. If the lender does not offer in-house title and escrow, this would be additional fees. Title and escrow generally cost $600-$700 and is often split between the buyer and seller. 

Closing can become complicated if you don’t know what to expect. 

Please call us at 800.627.5263. 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

Adam Meredith
Adam Meredith
President of AOPA Aviation Finance Company
Adam Meredith, the longtime president of AOPA Aviation Finance Co., died after a long battle with cancer in December 2023. He is remembered for his passion for helping fellow pilots, leading a team devoted to putting flight training and aircraft ownership within everyone’s reach.
Topics: AOPA Aviation Finance Co, AOPA Products and Services

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