Disney financing tip.....

[iankh]

Couldn't you just set-up an automatic monthly bill-pay from your bank (most banks offer this now at no charge) so the payment is sent off automatically every month, much like a debit. The advantage would be that you could easily alter the payment (double, triple, etc) to suit your needs should they arise.

 

[owtrbnks]

Wow, the OP must be a brain surgeon, or just have a little common sense.
Here's an even better plan: Save up the $ beforehand and put 100% down! Then there are no finance charges! While I realize everyone can't do that, the OP is just stating what is common sense.
If you need to be told that paying off your principal ASAP saves you money, you're wasting oxygen every time you breathe.

 

[Happy Birthday Cat]

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?

It's still the same regardless of credit score. That's one reason why DVC financing isn't for everyone. A Home Equity would work more to the advantage of someone with a great credit score (or even a credit card with a low locked in rate).

HBC

 

[changjoe]

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

are you saying that using Disney Visa to shop will pay for the points?

 

[mjkaferle5]

It's still the same regardless of credit score. That's one reason why DVC financing isn't for everyone. A Home Equity would work more to the advantage of someone with a great credit score (or even a credit card with a low locked in rate).

HBC

Thanks Cat!!

 

[dcfromva]

are you saying that using Disney Visa to shop will pay for the points?

changjoe,
Actually, I'm saying you can make your extra payments by using the Disney Visa--charging the transaction. You can then turn around and pay off the charge with the extra cash you had on hand for the extra payment. That way, you don't have to worry about changing the normal EFT transaction. (An added benefit with the Disney Visa is you receive reward points. )
-DC

 

[calypso*a*go-go]

I didn't know you could make payments using your Disney VISA. Our contract is paid in full, but if I added on through Disney...I would definitely use this option. Will they do it automatically each month, or can you only do it for extra principle payments?

owtrbnks -- There's no reason to be so sarcastic. There truly are many people that don't even realize you can do what the OP was kind enough to suggest. And, I'm sure they all realize that the best option would be paying for the membership up front...in a perfect world.

 

[Anewman]

owtrbnks -- There's no reason to be so sarcastic.

Calypso, if you read some of his previous posts you will notice the same if not worse tone. Some persons just like attention. I would just ignore it.

 

[Tigger7570]

I agree, just ignore it. That's exactly what is happening. Someone looking for attention. That said, thank you to the OP for posting. Our contracts have long been paid off, but it's great advice and like calypso*a* go go said, there truly are people who didn't know or think about this. I know I always like to read other people's ideas, because people have some great tips.

 

[lllovell]

On the subject brought up about saving it up and paying....we didn't do this for one reason (and I do understand that saving up and paying for it all at once would have made it so we paid NO interest)....

We would have gone to WDW anyway during the time we were saving up. If I go ahead and finance my DVC purchase with money I would have used to visit WDW (for which I get great memories, but no return), I will also come out ahead. Granted, I will pay more than if I paid cash, but not as much as it might seem. We will have gone for 18 days on our DVC points for the year, that is a lot money we would have put into the Disney coffers, but instead, we have made payments towards our home at DVC.

I think of it similar to renting an apartment or buying a house. You can rent and save up for a house, but in some respects, you are just tossing money away every month you DON'T go ahead and buy that house.

Laura

 

[shelleyz]

I think its very good advice. Its what we were going to do. DH and I are new owners, we haven't even made our first payment yet which will be direct debit from our checking account starting Sept 15th. We now have the money to pay it off but I was thinking about paying it with my Disney Visa for the reward dollars. To anyone who has made payments with credit card, how do I go about this. I guess I need to find the paper they sent me saying that direct debit was going to be starting in Sept. I'm sure the phone numbers on that paper. Thanks.

 

[SoCalKDG]

Wow, the OP must be a brain surgeon, or just have a little common sense.
Here's an even better plan: Save up the $ beforehand and put 100% down! Then there are no finance charges! While I realize everyone can't do that, the OP is just stating what is common sense.
If you need to be told that paying off your principal ASAP saves you money, you're wasting oxygen every time you breathe.

So you wait 5 years to save up that money, then realize the points now cost $20 more per point so you don't have enough money saved. Save some more, points cost more. Combine that with money spent at WDW during those years, I guess a payment plan might have been the better way to go.

 

[dcfromva]

Will they do it automatically each month, or can you only do it for extra principle payments?

calypso,
They won't permit you to charge your normal monthly payment, but you can do the extra unscheduled principle payments that way.

To anyone who has made payments with credit card, how do I go about this.

shelleyz,
Just call member services and select the member accounting option (I believe it is option #1) when you phone in.

-DC

 

[shelleyz]

Thank you dcfromva.

 

[lenshanem]

So you wait 5 years to save up that money, then realize the points now cost $20 more per point so you don't have enough money saved. Save some more, points cost more. Combine that with money spent at WDW during those years, I guess a payment plan might have been the better way to go.

Good point Ken!

 

[6IrishDisneyKids]

We just bought new/direct at SSR this week so this is fresh in my mind. If you put down 20%, the interest rate is 9.75% and there is no penalty for paying early. If you put down 10%, the rate is 10.75%,again with no pre-payment penalty. If you can put down 50% and pay in 1 year (for us this is ), then your interest rate is 5%.

Hope this helps!

Kristina

 

[Happy Birthday Cat]

If you can put down 50% and pay in 1 year, then your interest rate is 5%.

I wonder when this changed? We did the one year 50% down on a contract at the BCV when it was new and it was 0% back then. Must have been too many members taking advantage of that.

HBC

 

[6IrishDisneyKids]

I wonder when this changed? We did the one year 50% down on a contract at the BCV when it was new and it was 0% back then. Must have been too many members taking advantage of that.

HBC

As they say, all good thing smust come to an end... This must have gone by the wayside just like free APs to people buying into DVC years ago - my friends got 6 years of free tickets that way! I surely would have been doing the happy dance over that deal!

 

[Disney Doll]

Calypso, if you read some of his previous posts you will notice the same if not worse tone. Some persons just like attention. I would just ignore it.

Some people get very "brave" on this anonymous entity called the Internet and write things they wouldn't have the nerve to say to someone. Anonynmity gives folks, who normally don't have it, some courage. I'd ignore it too.

To the OP, your idea is exactly what DH & I did. We did not have the cash on hand to pay for our DVC contract when we bought it, so we financed it with the 10 year loan payment and paid it off within 3-4 years, doing double payments, extra payments etc. Worked for us, allowed us to enjoy DVC for 3-4 years more than we would have, had we tried to save the total amount in cash. Plus, a couple of years later we were able to buy more points using cash.

I have also heard of folks using their Disney VISA to purchase points, get the reward $$$ from VISA, then pay it off the next month with their home equity line, and get the tax breaks.

I have also heard of folks who used only their home equity line.

I have also heard of folks who have refinanced their house for more than they actually needed and then used the extra $$ to purchase DVC...probably the worst option because then you are technically paying off DVC for the length of your mortgage.

 

[cmoore]

We did the 10-year-financing thing too. We had exactly that in mind - if we finance for 10 years we can always pay off early, but if you finance for 5 years you can't pay off late.

We also did a rough analysis of buying outright versus financing. By financing we get a tax deduction for the interest on the loan, plus the money that we would have used to buy DVC stays in other investments and earns money. It looked to us like it was just about a wash - we'd come out about the same either way. Of course, everyone's situation is different, but that's what worked for us. On the other hand, when those monthly bills start coming in we may just pay the whole thing off.

Chris