Down Payment at Disney DVC?

[MOM POPPINS]

Hi everyone! I am a newbie to this thread. We are currently looking into buying into DVC. After 5 trips to WDW and no end in sight, we thought it maybe a good option for our large family. If we buy directly from Disney do we have to pay a down payment? If so how much is it? How much appox. is their interest rate? We are thinking since we go every other year of buying 175 points and then we would have the 350 to spend every other year. Will this work with the "banking points" system they have in place. I would love any other advice or information you may have to offer us...

 

[Maistre Gracey]

It's been quite some time since I bought, but last I knew the interest rate was about 11%, with a 10% down payment. For a while DVC was vacillating on the down payment. At one point you could apply the old "Magical Beginnings" toward the down payment, and later they said you couldn't.

That certainly may have changed over the last couple of years, so hopefully someone with more current info will be along shortly.

Good luck!...

MG

PS- Yes, that will work with banking & borrowing.

 

[WDWsnooper]

Less than an hour ago I was visiting with DVC regarding an add on. As with any financing, lots was mumbo-jumbo but a little info may help.

Saratoga Springs is $95 per point, but Disney will buy back 1st years points making it $85. Keep this in mind if you are oping to visit SSR soon.

Other DVC resorts --limited points available. All but SSR expire in 2042. (SSR is 12 yr later than that)

Financing can be $500 down.
---balance upon completion of paperwork
OR
---finance up to 10 yr. No prepayment penalty. I *think* 9% but I wasn't listening since I wasn't too interested in this one. I remember that it was a 1% discount if it was directly linked to a checking acc't.
OR
---Pay 50% down, balance over 12 months at 4.9%

Sorry if I am not as accurate as I could be, my head was spinning by the end of the conversation, but at least you have a "ball park guesstimate" of what it may cost.

I was also told that the financing was deductible for the length of the loan (as a mortgage) and that the tax part of the dues is deductible on a yearly basis.

Disney pays all closing costs.
Good luck number crunching.
Snoop

Note: I was asking about add-ons mostly. Some of the finance info I got may be regarding add ons instead of new contracts (????) Only a guess.
Information is POWER! Call DVC and get some power--my info may not be so powerful.

 

[LIFERBABE]

Hi and Welcome!

There is a downpayment if you finance thru DVC. I believe it is 10% down. The interest rate was 10.75% and 9.75% if you have your payment direct debited monthly.

Whether 175 would be a good number, depends on how long you stay, the season you travel and the resort. You will definitely need a 2 bedroom at least so with banking you could stay 7 days in any season except Premier at SSR.

I would go for an odd number and purchase 176 so then you would have enough to stay 8 nights 2 bed in any season except Premier if you bank. Sometimes 1 point can make a big difference like that and can mess up your planning if you dont have it. It's gotta be expensive getting all 7 of you to WDW (we drive) so an extra day (especially if you drive) may work out better.

Banking is exactly how you described and I think it would work great with your vacationing style. If you purchased this year, you would receive 2005 depending on the incentive you take, and even if you dont receive 2005 points, if you go in 2006, you could borrow from 2007 and still have the 350 total you need.

DVC is very flexible.

From your siggie, I see you stay at the Dolphin suites. I've never stayed there so I cant comment on unit size, but DVC is more like a home with all the comforts so you may pick up amenities and some space.

Also, choosing your Use Year will be more important, if you are relying on banking and borrowing. If you normally vacation in summer you wouldnt want a situation where you need to borrow but are already in a borrowing status because you dont get points until December. This is more important, if you plan on selling back your 2005 points.

 

[pumpkinboy]

OMG, are you really a family of 7! Looks like you two (parents) had better figure out what's causing it and quit!
Definately good 2BR candidates at DVC. I expect 350 points every other year with banking should do it, or 475 every three years with banking and borrowing.

As for financing from DVC, buying directly they will ask for a 20% downpayment, tho with Magical Beginnings (ie sell back your first years points) you can apply $10 a point ($1,750 in this hypothetical) to the downpayment, leaving you a minimum 10% downpayment.
As for the interest rate, I believe we got a rate of 9.75% (with direct debit) for a 10 year term. You can finance for terms anywhere between 1 and 10 years. With the 1 yr term you get a 4.75% rate, and anything more than that goes to the 9.75% rate. I would recommend regardless of your circumstances to take the maximum term available (if you're going >1 yr) to give yourself the maximum financial flexibility (ie lowest required payments); then you can always pre-pay and reduce the term as financial circumstances allow (and get rewards points for those pre-payments from you Disney Visa).

Good luck in your decision process!

 

[tamu91]

If we buy directly from Disney do we have to pay a down payment? If so how much is it? How much appox. is their interest rate? We are thinking since we go every other year of buying 175 points and then we would have the 350 to spend every other year. Will this work with the "banking points" system they have in place. I would love any other advice or information you may have to offer us...

First off, a big Texas welcome and let me see if I can shed some light here. If you buy directly from Disney, you can put down as little as 10% or as much as 50% and your interest rate adjusted based on your down payment. SSR is the only property that Disney offers and if you buy before 2/28 and if you're willing to wait until May/June'05, Disney will give you a $10/pt discount. You can opt for points good at everywhere else except @ SSR but you'd paying $95/pts. Resale is another option you should explore. You literally can save thousands. Good luck

 

[GCM13]

MOM POPPINS, I sent you a private message.

 

[dvc rookie]

You get to bank your first years points as well as get the $10 discount.

 

[snyderla]

I have my contract right next to me ready to FedEx back. 9.75% financing with direct debit, $500 down before they will send you the contract (a good faith type thing), then 10% due within 60 days. We opted for the $10 per point rebate (I don't really think of it as a "sellback", but it might be???), so that made another 10% down for us. Our use year is August, so come August 2005 we have 150 points available. I called monday morning a made our first reservation with some of those points. Closing is June 7, so we won't be staying before then. I can't wait to stay there for the first time.

Lori

 

[MOM POPPINS]

I have my contract right next to me ready to FedEx back. 9.75% financing with direct debit, $500 down before they will send you the contract (a good faith type thing), then 10% due within 60 days. We opted for the $10 per point rebate (I don't really think of it as a "sellback", but it might be???), so that made another 10% down for us. Our use year is August, so come August 2005 we have 150 points available. I called monday morning a made our first reservation with some of those points. Closing is June 7, so we won't be staying before then. I can't wait to stay there for the first time.

Lori

Hi Lori, So to clarify did you have to put down 10 or 20% to have points available this year? What about the free vacation they offer on line... Is that the points you get this year? Sorry I am still trying to sort through this... I have a email sent into DVC but I know I can get the answers here quicker!

 

[brandip22]

I can help, too. I also jsut FedEx'd my packet back on Monday. Th efree vacation is if you do not get the $10 per point buyback. basically, you will get to use your points before August. Only go this route if you plan on going before then becuase these are not points you can bank. Technically, there are no SSR points available utnil August, so you would be using what they call "developer's" points, I think. But, if you are not going until August or later, then you get the $10 per point buyback towards your downpayment and your points will bein Augusy 2005. Does that make sense? I know it's confusing- if I need to clarify, i will do my best!!

 

[DVCforMe]

I don't know much about current financing but I do know that buying points is addictive! Once you've stayed in a DVC resort you might find yourselves making more than one trip every two years so be careful! It's like eating chocolates, "if one is good two must be better......"

Charlotte

 

[dianeschlicht]

You sound like perfect candidates for DVC! I might suggest that you think about getting a home equity loan, since the interest will be lower, and mortgage money is tax deductible, while a DVC loan would not be.

 

[pkgman]

Why would it not be tax deductible? Disney sends out a 1098 for the interest.

I was going to get a home equity loan from my mortgage company - Countrywide. They had an equity line that was inerest only and any extra payment went to principal After figuring closing cost in, taking a 10 year loan from Disney and paying fast than schedule was only a small diffrence over 10 years. It was more advantagous to finance Disney over a shorter 2-3 year term.

Finally, have you thought about 0% APR credit cards. Starting with one card and switching after low APR. I only have three credit cards which are always send me 12 months of 0% APR.

 

[tggrbuny]

The interest on a DVC purchase is tax deductible. In my non disney life I work for the nasty government agency that shall remain nameless. Thank goodness for Disney to provide balance to my life!!!