Disney financing tip.....

[Disney1fan2002]

If you are buying into DVC, and are going through Disney financing, they offer you a choice of payment plans. Choose the 10 year plan to get the lowest monthly payment. THEN, send double or triple payments each month (if you can afford to). That way, if you have something that comes up unexpectedly in any given month, that payment won't be as big.

We did this, because we did not want to be obligated to have pay more money each month. I send a little over double what my required payment is, and my loan will be paid in full October of 2006.(probably sooner, because the balance is at a point now where we can use our tax refund to pay it off) That will be 46 months. I am also going from over $7000.00 in interest for 10 years to just paying a bit over $2000.00 in interest in the 4 years.

Just an FYI, and something to think about!

 

[hockey mom]

Thnaks for the heads up. We just signed up also and I wanted the 5 yr plan but they did the 10 yr plan and I was wondering if this might be better to add more to each month. Now I know

 

[lenshanem]

I have wanted to do this, but ours is set up on automatic debit... I wonder how I would add extra payments. Can you just call them in and have them deduct from your checking account?

 

[dcfromva]

Can you just call them in and have them deduct from your checking account?

lenshanem,
I never tried doing extra with the EFT, but one really easy way to add an extra payment is to use your Disney Visa. You can pay the Disney Visa off right away and you then you get reward points, too.

-DC

 

[Disney1fan2002]

I have wanted to do this, but ours is set up on automatic debit... I wonder how I would add extra payments. Can you just call them in and have them deduct from your checking account?

I have Disney do the direct debit, but then, I got the address info from them for my online billpay...so my extra payment I send to them as if I am mailing them a check every month. Call MS and ask for accounting. They will give you the info you need to set up electonic payments. Or they will give you their address and you can mail a check every month. They are ALWAYS happy to take you money! LOL

 

[LisaS]

Just out of curiosity, is the interest rate the same for the 5-year vs. the 10-year loan, or is it like home mortgages where the rate is higher for a longer-term loan?

 

[littlestar]

It's in our Member guidebook (the address) and who to make the extra principal payment to:

Disney Vacation Club
Attn: Member Accounting
P O Box 470727
Celebration FL 34747-0727

For down payments or loan payments: Make checks payable to Disney Vacation Development, Inc.

I created a letter saved on my computer something like this:

Disney Vacation Club:

Enclosed please find extra principal payments for:

VWL Contract # 0000000 = $25.00 (whatever amount you're sending)

BCV Contract #000000 = $25.00

I also include our name, address, and membership number on the letter.


Works perfectly. I call Member Accounting about twice a year to see how far down we've paid. Makes me feel good to see that balance go down.

 

[gppnj]

Good advice. I also have 10-year financing, but I'm going to be very aggressive about getting it paid off as quickly as possible.

 

[disneymom225]

We also just closed on DVC and also did the 10 year but plan to make double payments. It's a great option!

 

[Mike]

Just out of curiosity, is the interest rate the same for the 5-year vs. the 10-year loan, or is it like home mortgages where the rate is higher for a longer-term loan?

Good question. I think it was a higher rate if I am remembering correctly from my tour last year. I wasn't paying close attention to the financing info because I was 90% sure I was going to buy a resale and even if I didn't I was going to pay cash. I'd be surprised if the rates were the same. If it is a higher rate then the strategy recommended by the OP comes with a built in cost for the flexibility.

 

[gamomof2]

The rates are the same. The only time the rate goes up is when you want to put down just 10%.

 

[LisaS]

The rates are the same. The only time the rate goes up is when you want to put down just 10%.

That's great! Thanks!

 

[nboicepardee]

When we financed, the rate was also lower if you only financed for 1 year. Otherwise, the rate was the same (as long as you put down 20%).

 

[lenshanem]

There was no penalty for paying off the loan early, correct?

 

[gjw007]

There was no penalty for paying off the loan early, correct?

That is correct. The contract specifically states no penalty for early payoffs.

 

[Mike]

It sounds like the OP's tip is a wise one then. Why not take advantage of the added flexibility. I'll have to keep that in mind when I eventually buy the add-on that I swore I was never going to buy

 

[rocketriter]

I have wanted to do this, but ours is set up on automatic debit... I wonder how I would add extra payments. Can you just call them in and have them deduct from your checking account?

Yes, you can. This is what we have done. We simply set up an automatic debit that's higher than the required payment. If a month were to come along in which we didn't want to make that higher payment, we could call several days ahead of the debit date and make a one-time change. Your guide can connect you to the right person to make this work.

 

[Disney1fan2002]

Yes, you can. This is what we have done. We simply set up an automatic debit that's higher than the required payment. If a month were to come along in which we didn't want to make that higher payment, we could call several days ahead of the debit date and make a one-time change. Your guide can connect you to the right person to make this work.

We set up the 10 year financing for the lower monthly payment, to give us the flexibility to pay more each month or not, depending on what our situation was in any given month. Setting up something that only allows a one time change, kind of takes away from the flexibility of it all.

 

[Jay045]

I hate paying interrest, im still young, so i bought DVC b4 I bought a house, so I had to fill out the loan, stuff but just sent them a money order b4 my first payment
thinking of getting more, points possibly, my mom said they are more$$$ now, since when i got them about 2 years ago,
how much are the points now, is there any deals around?

 

[mjkaferle5]

I understand that the interest rate is higher if you only put down 10%. What about different credit scores? If my loan is approved and I put down 20% is the rate automatically 9.75%? Or does it change with my credit score?