Better Chance of Getting Preferred Interest

[Gren]

If you get approved for financing at the standard rate (14.75%), are you then locked into that rate, or can you lower the number of points you are purchasing and get the preferred rate?

Here's a scenario to [over]explain what I mean:

Let's assume that I would like to finance 320 points, and for argument's sake, let's say these points are divided up into 2 smaller 160-point contracts (1 SSR and 1 AKV). Disney will allow me to finance these points, but only at the standard rate of 14.75%. Would I be able to "re-negotiate" my direct Disney purchase to just 1 160-point AKV contract and obtain the preferred rate of 10.75%?

Now, to take this a little further... I've read on these forums that a direct purchase from Disney will not show up on my credit report. I will assume (again, for argument's sake) that this is true, but feel free to correct me if I'm wrong. If the above scenario of obtaining a lower interest rate holds true, what's to stop me from getting the AKV contract from Disney, and then financing the other 160-point SSR contract through resale (TTC is currently offering 10.95%, I believe)?

That way, I can get the number of points I want at a lower over-all interest rate. Of course, I would have to pay 2 closing costs, but the interest savings over the life of the loan would cover that, and more.

Just a thought.

 

[Budshark]

Interesting thoughts - but I don't think the overall "value" of the contract affects the financing rate. I think they charge the same rate for the same person on 160 points as they would on 320 points.

I think only getting to 50% down and 1 year financing really changes that. Something to ask your Guide though - they should understand and help.

With that said, if AKV wasn't a requirement, you MIGHT have more luck with Interest Rate and pricing going resale. With more lenders, you are more likely to find a lender willing to work with you at a preferred rate and save some money on points.

Good luck,
Chris

 

[Dman67]

We are currently looking at several options for financing our DVC purchase. The rates that Disney charges are high compared to what's available for Personal Loans, HELOCs, etc. (This is assuming you have good credit) We are probably going to go with Capital One at 6.9% which beats the rates that Disney is offering by a mile. My points is to shop around and see what you can get from other lenders before taking what Disney offers.

 

[MagicalPins]

I just bought in, they did a check and gave me the perfered rate before even asking how many points I wanted, so I don't think the amount of points purchased has anything to do with the interest rate.

 

[Gren]

Thank you all for your replies!

I just bought in, they did a check and gave me the perfered rate before even asking how many points I wanted, so I don't think the amount of points purchased has anything to do with the interest rate.

Essentially, that answered my question... My scenario was mostly hypothetical, but I have read posts of people getting the standard rate for "no apparent reason." I basically was wondering how much impact debt-to-income ratio would have on the interest rate assignment of these people who don't seem to have any other blemishes on their credit history. The fact that they run a check before you actually have a total tells me that it has little to none. My credit is good (no bankruptcy, defaults or late payments), and my debt to income ratio is relatively low, so I would expect to get the preferred rate on my entire purchase.

Also, the fact that a purchase through Disney will not appear on my credit report is appealing. It prevents [whatever amount the balance is] from being tied up and provides a little more leverage in negotiating loans that do require a full credit report (home loans, for instance).