Disney Interest Rates?

[aajmich]

We currently have 150 BWV points and are considering doing an add on or possibly an new contract somewhere.

1. What is the current interest rates that Disney is charging for
add on's that qualify for Disney financing?
2. What is the current interest rate for NEW purchases financed
with Disney?
3. What are the terms (length) of the loans Disney offers for
both add on's and new contracts?

Thanks for the help!

 

[TheWho]

Hi ,
I just brought 120 points last week at Bw.(Add on)

I used MB, so I paid $74 per point with a down payment of $1,008. (that 10% using $84 per point)

So I financed $7,872 at 9.75% for ten years.

I belive all the years, 5 or 10, are the same rate, 9.75%.

Hope this helps.

 

[todsue99]

I do not know what Disney interest rates are, but you will be alot better off doing a home equity loan. Even our guide told us Disney rates are too high. I do not know if you own a house, but it something to think about.

 

[disneyberry]

i believe they are:

50% down, 1 year financing = 4.75%

20% down, 3, 5, 7, 10 year = 9.75%

10% down, 3, 5, 7, 10 year = 10.75%

i'm not 100% sure about these numbers though.

 

[FreeTime]

I was told yesterday that the only different on the interest rates is whether you have direct debit our coupons. Debit is 9.75 coupons is 10.75. It would be the same rate for 5,7, or 10 years. I am probably the only one with this opinion but I would not get a home equity loan or personal loan or use a cc to pay for points. If you finance with Disney you can pay off early with no penalty and they don't report to your cbr (so if something were to happen and you couldn't pay it won't hurt your credit). We have our main contract, 1 add on, and debating whether to do an additional one. I hadn't planned on doing an add on so soon, so I don't have enough cashed saved (I don't want the BW points to slip away.) We will be paying it off within 6 months or so, so I don't see also the hassle of getting a loan elsewhere.

 

[erikthewise]

As someone who teaches personal finance to college students, I can't overemphasize how bad Disney's rates are. For a 10-year term, the difference between Disney's 9.75% and a 4% home equity loan is about 3/4 of your annual dues. So if you don't mind paying your annual dues twice, go ahead and finance with Disney. But do everything you can to pay it off early.

 

[WDWorBUST]

Just an additional thought on the subject - even though home equity loans have great interest rates you are putting your home on the line if for some reason you can't pay for your DVC membership. I'm not a DVC member but hoping to be one soon.....when I can pay at least 50% down cash. I agree the additional cost of going with Disney's financing is a lot of money there is no vacation worth putting my true "home" on the line.