Disney Financing Question

[vfinder1]

We got our financing through disney and I have a question. We got the loan for five years, if we want to pay more and pay it off sooner is that possible? I know they are auto-deducting the payments through my checking account, would I be able to send them a check if I want to pay more?? I have not signed my papers yet so these questions could be answered in there but I was wondering now.

Thanks

 

[phorsenuf]

We got our financing through disney and I have a question. We got the loan for five years, if we want to pay more and pay it off sooner is that possible? I know they are auto-deducting the payments through my checking account, would I be able to send them a check if I want to pay more?? I have not signed my papers yet so these questions could be answered in there but I was wondering now.

Thanks

Yes, you can pay more any time you would want and pay it off early if you choose. There is an address on the DVC member website as to where to send the payments.

 

[vfinder1]

Thanks

 

[cobbler]

You can even pay extra online. If you want to use your credit/debit card.
When you go to the DVC member site after you are in the system there is a place to make additional payments to the principle.

 

[vfinder1]

You can even pay extra online. If you want to use your credit/debit card.
When you go to the DVC member site after you are in the system there is a place to make additional payments to the principle.

That sounds even better. Another way for me to rack up some more disney dollars from my disney visa card Since I have not received my papers yet I have another question, is this loan directly through Disney or some bank?

Thanks

 

[macman752]

That sounds even better. Another way for me to rack up some more disney dollars from my disney visa card Since I have not received my papers yet I have another question, is this loan directly through Disney or some bank?

Thanks

Vfinder1,

Disney holds the loan. One of the papers you will be receiving is a disclosure form on whether or not your loan will be sold to another. The form should indicate that there is a low probability that the loan will be sold.

 

[phorsenuf]

Disney financing also does not report to credit agencies so it won't show on any reports.

 

[mbrowninc]

I did not know disney does not report to credit agencies. I did not buy as many points as I would have because of this. We are building a new house and did not want a bunch of new credit when we go to refinance. I wonder if my guide would let me change and add more points?

Melanie

 

[aprince&princess]

I did not know disney does not report to credit agencies. I did not buy as many points as I would have because of this. We are building a new house and did not want a bunch of new credit when we go to refinance. I wonder if my guide would let me change and add more points?

Melanie

Our guide told us that it doesn't show on credit reports when we took the tour. I bet it isn't an issue if the paperwork hasn't been sent out yet. It doesn't hurt to ask.

 

[Eventer98]

I have a Disney financing question...what determines if you get the 10.75% interest rate or the 14.75%?? For us it would be a difference of $3K in interest. I assume it goes by credit rating?? Thanks for letting me butt in with a question!!

 

[jjk1107]

I have a Disney financing question...what determines if you get the 10.75% interest rate or the 14.75%?? For us it would be a difference of $3K in interest. I assume it goes by credit rating?? Thanks for letting me butt in with a question!!

It does have to do with credit rating, but it seems to be very flexible as to what they will accept for the 10.95% interest rate. I do not have the greatest credit but still got the preferred rate. They do not pull a full credit report. They use a program that literally just prints at a piece of paper that says if it is the preferred or the standard rate, so no one at Disney actually sees your report. If you are concerned like I was, it only takes 2 minutes for them to tell you what rate you qualify for.

 

[Eventer98]

That sounds promising....we were waiting until Oct to purchase b/c of my credit but perhaps we may be able to purchase in June if we can get the lower rate. I don't want to look into it until I have the down payment in hand....otherwise it's just a tease! I'm doing the tour in June so maybe that will be the magic time!

 

[disneylvrnMS]

When I purchased in 2006 my guide told me that the only two reasons Disney would turn down financing for you is 1) you are currently late on a mortgage or 2) you have a pending bankruptcy that has not yet been discharged.

 

[vfinder1]

I have another financing question.

Okay we got a 5 year loan, my question is if we pay extra and pay to the priniciple of the loan every month and lets say get it paid off in 3 years, would we still have to pay the $5,000 in interest charges or does that amount lower since we got it paid off early? I see the interest charges put in my loan already so that is why I am asking this question. I know if you pay on the principle of a car loan then you don't have to pay those extra interest charges.

Thanks

 

[DFTGMTX]

You would avoid some of the interest charges if you pay down extra principle in advance, as you would be carrying less principle to apply interest to in the future.

 

[TammyAlphabet]

I have another financing question.

Okay we got a 5 year loan, my question is if we pay extra and pay to the priniciple of the loan every month and lets say get it paid off in 3 years, would we still have to pay the $5,000 in interest charges or does that amount lower since we got it paid off early? I see the interest charges put in my loan already so that is why I am asking this question. I know if you pay on the principle of a car loan then you don't have to pay those extra interest charges.

Thanks

The loans through DVC are simple interest. That simply means that the interest is accrued monthly on the outstanding balance. If you pay down the balance, you pay less interest. Where you see the interest added in on your closing papers is the interest that you would pay if you paid the loan out exactly as agreed. This is a requirement of the Truth in Lending act so that borrowers are fully aware of how much this loan is going to cost them in the long run.

In the past, some companies, not DVC, would make loans based on the rule of 78s or something like that and the whole interest was rolled into the loan and there was no rebate for paying early. This is not how DVC operates. Once your loan is in the system and you have online access to the DVC member page, you will be able to see the principal balance of the loan and be able to verify that the principal does not include the future interest.