# Question on how Disney Financing works

Discussion in 'Purchasing DVC' started by nyisles84, Aug 21, 2013.

1. ### nyisles84Mouseketeer

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Jan 24, 2010
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163
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!

3. ### erionmDIS Veteran

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Dec 6, 2008
Messages:
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Your monthly payment will include interest and principal.

4. ### nyisles84Mouseketeer

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Jan 24, 2010
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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?

5. ### Lynne MModeratorModerator

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Nov 4, 2001
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I'd just google for a loan calculator. Most will provide the total amount of interest paid.

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7. ### erionmDIS Veteran

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Dec 6, 2008
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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.

8. ### nyisles84Mouseketeer

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Jan 24, 2010
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Awesome. Thank you everyone!

9. ### SandiswModeratorModerator

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Nov 15, 2008
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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.