Time to refinance?

Economists are predicting future rate hikes. What’s more, banks are hungry for loans on turbine aircraft in particular—therefore, pricing is very competitive.

Refinancing is not complicated, but—as with any financial transaction—preparation will ease the process. It starts with a phone call. AOPA Aviation Finance will look to see what your payoff amount is compared to what the aircraft is worth. That will determine what options are available to you.

Typically, AOPA Aviation Finance can recast the loan, or amortize it over a longer period, with a lower monthly payment. Or, if you financed your aircraft before 2013, you likely will be able to get a lower interest rate.

Typically, AOPA Aviation Finance can recast the loan, or amortize it over a longer period, with a lower monthly payment. Or, if you financed your aircraft before 2013, you likely will be able to get a lower interest rate.To help the process move expeditiously, your tax returns and business financials, if applicable, should be in order. You’ll also need to provide information that will help the lender assess the aircraft’s value and airworthiness.

In general, if you own the aircraft, there’s only one side of the transaction to worry about. That’s the existing lender. For example, it can be difficult to get a payoff quote if the original lender is no longer in business. The existing lender may not offer aircraft financing, and it may not understand the process of aircraft transactions.

The good news is, because AOPA Aviation Finance does this regularly, we have relationships even with institutions that are no longer in the business of providing aircraft loans. Through our escrow partner, Aero-Space Reports, we are often able to get that resolved much more seamlessly than other institutions would be able to do.

Once the information is compiled and a payoff quote and lien release positioned in escrow, the final approval can range from a day to two weeks.

We’re in a rising-interest-rate environment. If you plan on keeping the aircraft, now’s the time to look at refinancing.