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-   -   Financing Question (http://www.disboards.com/showthread.php?t=3154063)

kkmauch 08-07-2013 12:13 PM

Financing Question
 
We are looking at buying into AKL with the current incentives. How do we know if we will qualify for Standard, Preferred or Premium interest rate? How do we know what percentage down will be required? And finally, when looking at the percent down, is the closing cost in addition to that or is the closing cost included in the percent down required?

We are using bonuses to pay for the membership, so it will take at least 3 to pay off the full amount. Please don't give me advice on financing, we've done the math, and this makes sense for our family.

All I want to know is how we know what financing we will receive and how much we will be required to put down.

Thanks!

Minniesgal 08-07-2013 12:25 PM

The deposit is a minimum of 10 percent and you get a better rate if you put down 20 percent you get a better rate. Your rate is defined by your credit rating. But be careful because they are all very high.

Minniesgal 08-07-2013 12:26 PM

Quote:

Originally Posted by Minniesgal (Post 49211336)
The deposit is a minimum of 10 percent and you get a better rate if you put down 20 percent you get a better rate. Your rate is defined by your credit rating. But be careful because they are all very high.

Closing costs are in addition to the deposit.

intertile 08-07-2013 12:31 PM

I was able to roll my closing costs into my loan.

kkmauch 08-07-2013 12:36 PM

Thanks all for your responses. I should clarify, we know that 10% down is the minimum required. But in reading the fine print on the chart we got from our Guide, it said you could be required to put down 10%, 20% or 50%. We wanted to know how we could tell what was required.

intertile 08-07-2013 12:44 PM

As soon as they run your credit, you'll know the answers to those questions.

From personal experience, the most I was ever asked to put down was 10%. I always choose to put down 20% to get the better rate and lower the monthly payment. Then again, I use the financing only as a vehicle to make the purchase, and pay down the loan within 24 months.

As soon as your guide runs your credit he will have all the exact numbers for you to make an informed decision based on your situation.

Also remember, even after you sign all the documents you have I believe 10 days to change your mind. So don't feel rushed, or like your annoying your guide. Ask as many questions as you need to. This is not a trivial purchase.

Good luck.

RSWA2 08-07-2013 12:46 PM

I think just like with a mortgage or a car loan, the specifics of what rate you get is often unknown to the consumer.

I would say to get an average rate, you need to have 20% down.

You mentioned that you would pay it off in 3 payments. What were you using as the principal and interest in calculating that? Best case or worse case? I would go in with at least 20%, with the ability to bump it up to 40% if you don't get the rate you want.

But, with such a short term (3-4 months) a change in rate or a change in down payment, doesn't a huge effect on the payments you will make.

kkmauch 08-07-2013 01:17 PM

Thanks all! We are trying to do 10% down as we are installing a fence with the rest of the bonus. Then, we'll use the next two bonuses to pay the entire thing off. Should be a 6-8 month loan in total. The extra 10% down makes a difference, but not that big a difference over 6-8 months for us. All a personal decision I guess.

Thanks!

Missyrose 08-07-2013 02:13 PM

Quote:

Originally Posted by kkmauch (Post 49211931)
Thanks all! We are trying to do 10% down as we are installing a fence with the rest of the bonus. Then, we'll use the next two bonuses to pay the entire thing off. Should be a 6-8 month loan in total. The extra 10% down makes a difference, but not that big a difference over 6-8 months for us. All a personal decision I guess.

Thanks!

The one-year loan carries a 5.9 percent interest rate, I believe. But you have to put 50 percent down to get it.

Sandisw 08-07-2013 03:32 PM

Quote:

Originally Posted by kkmauch (Post 49211931)
Thanks all! We are trying to do 10% down as we are installing a fence with the rest of the bonus. Then, we'll use the next two bonuses to pay the entire thing off. Should be a 6-8 month loan in total. The extra 10% down makes a difference, but not that big a difference over 6-8 months for us. All a personal decision I guess.

Thanks!

Do you own a Disney visa? If so, you can get 6 months with 0% interest. I bought all 180 BLT points this way...and, when I bought, I asked them to delay the balance for a few weeks so I ended up with 7 months.

You could use it to do the 50% deposit and get the 1 year loan at the lower rate as it sounds like you will be paying off within the year.

Good luck!

jillmc40 08-07-2013 03:45 PM

Quote:

Originally Posted by Sandisw (Post 49213643)
Do you own a Disney visa? If so, you can get 6 months with 0% interest. I bought all 180 BLT points this way...and, when I bought, I asked them to delay the balance for a few weeks so I ended up with 7 months.

You could use it to do the 50% deposit and get the 1 year loan at the lower rate as it sounds like you will be paying off within the year.

Good luck!

I put mine on my Disney Visa too! My minimum payment is 79.00 a month so far...I'm liking that :) My guide split it into 2 payments. One on one billing cycle, the other half on the next.

jerseyduke 08-08-2013 06:47 AM

The rate, or "level" you fall into is all based on your credit score. Call them, they will run your SSN number and tell you which one you are; standard, preferred or premium, or whatever they call them.

Takes about 2 minutes for them to do, if that.

crisi 08-08-2013 07:46 AM

We have a HELOC that we use for things like this - the rate is pretty low and we can get the money with a simple transfer. Its also for certain tax deductible.

DizBub 08-08-2013 08:04 AM

We also used our Disney Visa for our initial purchase and a subsequent add-on. But they would only allow $5000 each time as a downpayment. Both times we used the 6 months to pay it down. Still, it was a useful tool. Since we arranged our own financing for the balances our interest rate was nowhere near what Disney wanted.

Princess_Nikki 08-08-2013 08:32 AM

Just out of curiosity, I thought I read in the information DVC sent me that $25,000.00 was the "buy in" amount. Is it just different then on what locations you choose? If its based on credit, what would be an monetary example of what one can expect to pay at the 10%, 20%, or 50% mark? TIA!


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