Buying resale. Who to finance from?

[Tigger1]

Considering purchasing a resale to add onto my other points. May finance and questioning what company. Has anyone had good/bad experiences financing outside of Disney?

 

[MICKIMINI]

This is not a answer per se, but 0% credit cards can be a great option to finance a resale...much better than DVC's 10% or whatever they are currently charging.

 

[EYL]

Considering purchasing a resale to add onto my other points. May finance and questioning what company. Has anyone had good/bad experiences financing outside of Disney?

If you have excellent credit, try Lightstream. Lower interest rates, no penalties for early payments, and you can get an approval within 2 hours. It's not a mortgage, so it's not recorded. But they do perform a hard pull on your credit.

 

[Tigger1]

This is not a answer per se, but 0% credit cards can be a great option to finance a resale...much better than DVC's 10% or whatever they are currently charging.

I did not know you could purchase with a credit card. Most credit cards with 0 % are for just a year, then higher percent. Would work well to earn interest on savings for a year.

 

[Perelandra]

I did not know you could purchase with a credit card. Most credit cards with 0 % are for just a year, then higher percent. Would work well to earn interest on savings for a year.

They will have a limit to how much you can put in a card, but if you get one that has checks that come with the card you could make a deposit into your bank account against the cards balance, since the title company will likely require a cashiers check from your bank. That’s assuming you could get the checks in time, and there are no large transaction fees on the card for using the checks, and no restrictions about depositing in your account. I have never tried this option, but theoretically it could work. I would do all the research first though.
I have used Lightstream b4 and I had money in my account within 24 hours and they do not hold the mortgage, it’s basically just cash. Also, one more tip on that, if you have an automobile that has equity, you can do an auto refinance for a better rate and they DO NOT hold your vehicle title, so it’s still just an unsecured loan, but in the 4 percent range as opposed to the 10% range. This is what I’m planning to do on my contract I’m purchasing at the moment.

 

[MICKIMINI]

Money is a tool and it pays to be creative in how you use it...if you owe $10000 but can pay 0% or 4% on the same amount vs 10% by moving things around without jeopardizing your financial health and credit score that is smart. My strategy is if I don't have quite enough cash is I use a 0% for 12 months or so to pay equal payments on the balance with little or no cost - the caveat being NEVER SCREW UP. I will only buy a car if I can get 0%. We haven't had a mortgage, paid interest or fees on anything for quite a few years and I view it as "found money". I would rather save longer than pay 10% on anything.

 

[Perelandra]

You could use a HELOC and then possibly write the interest off on your taxes, if you have a HELOC, but I wouldn’t want to tie up my personal home equity on a timeshare, even if it is a Disney timeshare.

 

[EYL]

I did not know you could purchase with a credit card. Most credit cards with 0 % are for just a year, then higher percent. Would work well to earn interest on savings for a year.

Know that if you use more than ~30% of your total credit, it may impact your credit score during that timeframe. If you need to keep your credit score high, this may not be the way for you to go. For example, if you're thinking of switching over to a loan after the 0% credit card terms have passed, your lower credit score could have an impact of you getting that loan. Every person's credit history is different, of course, so your situation may vary.

 

[CanadaDisney05]

You could use a HELOC and then possibly write the interest off on your taxes, if you have a HELOC, but I wouldn’t want to tie up my personal home equity on a timeshare, even if it is a Disney timeshare.

Generally agree with this, but it's pretty dependent on situation. For example, if you own a home that's worth $500k and have a $200k mortgage, then a $15K heloc for DVC is pretty minimal additional risk.

If you own a 300k home with a $240k mortgage, then adding a $45k DVC contract on a HELOC adds a decent level of risk

 

[crvetter]

You could use a HELOC and then possibly write the interest off on your taxes, if you have a HELOC, but I wouldn’t want to tie up my personal home equity on a timeshare, even if it is a Disney timeshare.

With the tax law changes in 2017 in the US HELOC interest is not tax deductible (for new debt existing debt was grandfathered) if the money went to anything other than the home it was drawn against.

 

[Dizzydizney]

Using the zero percent balance transfers or those low percent (I had one that was 1%) checks that you sometimes get from your CC company are great ONLY and Only when you have a good grip on your finances. As @MICKIMINI said you can never allow yourself to SCREW UP! It can be a dangerous house of cards. You miss one payment and you can be socked with 21% interest. You have to be organized and on top of things. When the zero percent thing is nearing an end you need to find another new card to apply for zero percent balance transfer. But if you have crappy credit it won’t work in your favor. I can’t stress enough how important it is that you have the $$ to make this work. You don’t pay the “minimum”. You pay much more than the minimum each month to pay down the debt. It is easy to become “lazy” and just pay the minimum. If you keep dragging it out it could affect your credit rating, and not in a good way. When I used this method (not for DVC purchase) I had a plan written out on paper about how much I would pay each month and had an “end date” planned. It was a lot of work and kind of stressful, but for me it was worth it. Do your research and some soul searching!

 

[Maistre Gracey]

Writing those checks to yourself, at least with many cc companies, is equal to taking a cash advance. Cash advances don’t usually qualify for 0%.

 

[Dizzydizney]

Writing those checks to yourself, at least with many cc companies, is equal to taking a cash advance. Cash advances don’t usually qualify for 0%.

No it’s not. Those checks can be a one, two or three percent fee, depending on your score. With Zero percent financing for 8, 12 or 18 months, again depending on the individual. A cash advance is like legal loansharking. Again, one must be well versed on how to accomplish this without incurring any extra fees or interest charges.

 

[Perelandra]

With the tax law changes in 2017 in the US HELOC interest is not tax deductible (for new debt existing debt was grandfathered) if the money went to anything other than the home it was drawn against.

I was not aware of the change. That is very helpful to know.

 

[Maistre Gracey]

No it’s not. Those checks can be a one, two or three percent fee, depending on your score. With Zero percent financing for 8, 12 or 18 months, again depending on the individual. A cash advance is like legal loansharking. Again, one must be well versed on how to accomplish this without incurring any extra fees or interest charges.

As I said, it depends upon the bank.