RV loan term comparison (2025 analysis): **20-year loan pros**: Lower monthly payment = easier to afford.

Example: $150,000 RV at 7% APR. 20-year term → $1,162/month. 15-year → $1,348/month (16% higher). 10-year → $1,742/month (50% higher). **If budget tight**, 20-year loan avoids payment shock.

Many buyers can only afford $1,200/month max → 20-year is ONLY option.

**20-year loan cons**: Pay WAY more interest.

Same $150k RV at 7%: 20-year total interest = **$128,880**. 15-year = $92,640 (save $36k). 10-year = $59,040 (save $70k). **Extra decade of payments costs $70,000**.

Plus depreciation risk: RVs lose 20-30% value first 3 years, 50-60% after 10 years. 20-year loan → underwater (owe more than worth) for 8-12 years.

Sell early = write check to lender.

**When 20-year makes sense (2025)**: (1) Buy $200k+ luxury motorhome, need payment under $1,500/month, plan to keep 15-20 years. (2) Low rate locked (5-6% vs today's 7-9%). (3) Full-timing (living in RV) = not depreciating asset, it's your home. (4) Age 50+ buying "forever RV" = will use full term. (5) Can make extra payments when able (flexibility).

**When shorter term better**: (1) Used RV (depreciation already happened). (2) Plan to upgrade in 5-10 years. (3) Can afford 10-15 year payment. (4) Want equity fast (trade-in/sell flexibility). (5) High interest rate (8-9%) = minimize interest paid.

**Hybrid strategy**: Take 20-year loan for LOW payment, but pay extra to match 15-year schedule.

Example: $150k at 7%, 20-year = $1,162/month required.

Pay $1,348/month (15-year pace) → Save $36k interest but have flexibility to drop to $1,162 if needed (job loss, emergency). **Best of both worlds**: low minimum payment + fast payoff + no prepayment penalty (verify with lender).

**2025 rate ranges**: New RV 5.5-8% (excellent credit), used RV 6-9%, loans $50k+ qualify for lowest rates, <$50k = 1-2% higher.

Credit score impact: 750+ = 6-7%, 700-749 = 7-8%, 650-699 = 8-9%+.

Down payment 10-20% typical, 20%+ = better rate (0.25-0.5% discount).