early pay penalty??

[mlaniewski]

Has anyone paid their financing off early? If so, is there a penalty for doing so?

Michelle

 

[InstImpres]

Wish I have, but I haven't. We did ask and as long as it isn't in the first year, there is no penalty. (Double check your contract, my understanding is there have been contract changes if you bought in the last 2 years)

 

[imgoingtodisney]

We bought Nov 01 and are hoping to pay off the loan by this Oct 03. I thought there was not going to be a penalty. Does anyone know for sure?

 

[mlaniewski]

We'd like to finance and then pay it off in January of next year. I've got my husband on a roll with the financial figuring but he's stuck on this point.

 

[DVCGirl49]

I specifically asked my guide this when we were in the process of financing. We were told that as long as it is not paid off within the first year of the loan there is no fee/penalty, and therefore going for the 7 yr loan (it had the same interest rate as the 3, 5, and 10 yr) because it had a low monthly payment amount and I could pay whatever extra amount I wished per month extra toward the principal with no penalty and the option on just paying the regular payment amount if for whatever reason a month came along that bills were tight (Christmas bills, spending $ for DVC trips, etc). It has worked out well for me so far, I have been paying approx $100-200 extra per month for a year and a half now and have enjoyed the flexability in how much extra to pay a month to get it paid off faster.

 

[imgoingtodisney]

Michelle - I found it
"Prepayment: If you pay off your loan early, you will not have to pay a penalty"
this is on our note and truth-in lending disclosure statement

 

[Cruelladeville]

I have bought two contracts, financed for 10 years, and paid them off in 4 years. There is no penalty--when I knew I was getting close, I called to get a pay-off amount, and they let me know how much interest I was paying per day so I could calculate closer. You get a note in the mail about two months later that says basically, congratulations! If we can be of further service, you know the number to call--it's anticlimactic after all those months of paying

 

[Doctor P]

We paid off early and there was no penalty. Paid off a 5 year loan in about a year as I recall.