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-   -   Question on how Disney Financing works (http://www.disboards.com/showthread.php?t=3161031)

 nyisles84 08-21-2013 10:29 AM

Question on how Disney Financing works

Hello All. I have a quick question of how interest and financing works through Disney.

I am a dummy when it comes to math and all these fancy calculations.

So my question is, if you are offered the 8.99% interest rate (DVC Member putting 20% down), is that interest hit every year? Or does it work where they just add 8.99% interest to the total amount you loaned through Disney.

Any help would be great.

Thanks!

 erionm 08-21-2013 10:31 AM

Your monthly payment will include interest and principal.

 nyisles84 08-21-2013 10:39 AM

Quote:
 Originally Posted by erionm (Post 49346813) Your monthly payment will include interest and principal.
Yes. I guess what I am trying to find out really is how much in interest will I be paying over the course of a loan.

Do I just take the amount loaned and add 8.99% to it or is 8.99% charged every year based on the amount that is left?

 Lynne M 08-21-2013 10:45 AM

I'd just google for a loan calculator. Most will provide the total amount of interest paid.

 automaticsoap 08-21-2013 11:11 AM

Quote:
 Originally Posted by Lynne M (Post 49346975) I'd just google for a loan calculator. Most will provide the total amount of interest paid.
I've used this one -- http://www.thecalculatorsite.com/fin...calculator.php.

 erionm 08-21-2013 11:18 AM

Quote:
 Originally Posted by nyisles84 (Post 49346802) Hello All. I have a quick question of how interest and financing works through Disney. I am a dummy when it comes to math and all these fancy calculations. So my question is, if you are offered the 8.99% interest rate (DVC Member putting 20% down), is that interest hit every year? Or does it work where they just add 8.99% interest to the total amount you loaned through Disney. Any help would be great. Thanks!
If you financed \$20,000 at 8.99%, you would pay approx. \$10,389.20 in interest over 10 years. You could reduce that by about half if you financed for 5 years.

 nyisles84 08-21-2013 11:23 AM

Awesome. Thank you everyone!

 Sandisw 08-21-2013 11:25 AM

It is per year, but as you pay it off, the amount charged will be based on the balance. As mentioned, it is easy to find and use the rate calculators for the exact amount. There is no prepayment penalty with Disney so you can pay off the balance whenever you want and that will reduce the total interest paid. The longer you hold the loan, the more interest you pay.

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