Resale financing question
Can anyone tell me about financing for resale. We are just starting our research and after looking into buying direct we think resale is definitely the way to go for us. I have looked at Fidelity and Timeshare store and have found some resales we are interested in. We would like to put some money down but then finance the rest. Any info would be greatly appreciated! Thanks :)
The rates are about 10% if you are financing you may be better off just renting points because that finance charge really negates the savings.
You can put your down payment on a credit card. We found our own financing through our credit union at 2.24%. I know that's low but it's because we pledged shares. There are many ways to creatively finance your purchase.
I have heard of people getting new credit cards with a low fixed rate and paying off the balance before the rate goes up. Others have refinanced their homes at the new lower rates and rolled their DVC into their mortgage using their equity. Depending on the size of the contract you want to buy, saving up and paying cash would save you money in the long run.
I did resale and I was able to finance through Timeshare Lending.net. Yes, the interest rate is high. However, I am still saving money over buying direct from Disney AND paying cash. If you're going to finance (obviously better to pay cash, but that's not the choice we made...) here is what we did.
We purchased 160 points at SSR for $55 a point. We had two years in banked points which we were able to rent out for $3500...this went directly toward the purchase price. So we financed $7,700 over 5 years at 12.9%...total purchase price including interest is $10,488. Spread over the remaining 42 years of the contract=
10488/42 = $250
+MF points - roughly $750 per year...assume any increase will also see a corresponding increase in hotel rooms.
=$1000 per year. 160 points can get me 12 nights a year in an SSR studio during value season. Cheapest hotel room on property=$1008 + tax for 12 nights. Thats for a value - not even a mod or a deluxe!! Further more, renting 160 points at $10 a point = $1600 a year...you also don't get any ownership perks, like the $399 PAP deal that's running right now.
If we didn't finance, our "yearly cost" would be about $933 a year for the same 12 nights. Not a huge cost over the life of a DVC contract.
A lot of people do not want to finance, which I totally understand...but it's simply not true that financing negates all possible savings. Now buying direct and financing is a whole 'nother animal!
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