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Fixed-Rate or Adjustable-Rate?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, 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.

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