DVC Advice needed for a Disney mom

[NYMomof4]

Well, I've been reading the boards and debating on buying into a little piece of the magic! I have 4 kids and we love Disney, not a ton of money but enough to take a $3500 vacation the past two years to POR for a week. With my size crew (4 kids and usually my mother or sister) I am thinking that a 5 day stay with points (about 120-150 pts) at a 2 bdrm would be a good start for us.

My main questions seem to be: Has anyone financed resale through their mortgage or other source? I have about $5000 available but would need to borrow the rest.

I live in NY and have been to the real Saratoga every year since I was born so I'm not 100% sure I need to escape NY to go to SSR in Florida. Is it really feasable to vacation at the other resorts without being held to SSR?

Any other advice would be greatly appreciated. I expect my income to increase in the future so this wouldn't break the bank-my $400 car payment ends in a few months and the mortgage just dropped so these are factors that have fueled my desire to buy. Are there any possible disadvantages that I haven't looked at? Thanks in advance!

 

[Cruelladeville]

Many of us have used our houses to finance DVC, but there can be a hefty fee associated with that, so be sure to check before you agree to this. Disney also has financing, and pretty much everyone qualifies. Several people have used credit cards to finance DVC too. This may or may not work, depending on the card. I used a credit card for part of my DVC, and they raised my interest rate from 3% to 19% when they got the payment one day late, so be careful.

There usually isn't much trouble getting in to the otther resorts if you use your 7 month window, you aren't vacationing at Christmas or Easter, and you are flexible with resorts. For example, VWL may be full, but you could find availability at BCV, you have to be willing to change your plans slightly.

I hope everything works out for you. DVC is a wonderful investment in future vacations for you and your family!

 

[traycie2201]

Hi being from the UK we financed through Disney so can't help on that score, i can tell you that we have been members since 2000 and the vacations we have taken have now completely recouped the cost of us buying our points, we have had wonderful holidays in a studio, 1bed and cruise that we would not of been able to take pre DVC, the only time we ever get a twinge of regret is when the annual due notice comes uk owners have to pay in one lump sum and can't spread dues payments. We have never stayed in our home resort and have never had trouble getting what we wanted, obviously if you want xmas , easter etc you may have some trouble. Hope this helps

 

[Caskbill]

Getting a home equity loan can be an excellent way to finance since that will probably be the lowest rates you'll be able to find. That also makes it possible to purchase resale, where you might be able to save some money. You might consider an OKW resale for a couple of reasons: 1. They're usually a little cheaper, 2. The 2-B/R units there are considerably larger than the 2-B/R units at any of the other resorts. 3. Dues are smaller.

The downside is it expires in 2042 whereas SSR expires in 2054.

The Timeshare Store (which is a sponsor to this board) always has a number of listings. You might check out their web site.

 

[laceemouse]

Yes, we have used home equity to buy 2 contracts with DVC. We first bought 160 points at BCV from Disney, then we bought 250 VWL points re-sale. We have 4 kids, aged from 7 to 14, and we LOVE the 2 bedroom units! We have stayed at BCV (great location!) and OKW (HUGE rooms!) and will make our first VWL stay this Christmas. Just be aware that is it harder to book you non-home resort at certain times of year than at others. We used to be very much against taking the kids out of school, just too much work to make up, so we did summer, spring break, and such. Now we are starting to homeschool so we are much more open about when we can travel. Our points are now going to go a LOT further!!! I must say, we went to SSR last October to swim when we were staying at OKW and the main pool was closed. SSR is a beautiful resort, I would NOT mind staying there at all, and the walk to DTD is very enjoyable. Good luck in your decision, I think DVC is especially good for larger families as we would always be looking at getting 2 rooms anyway, and the kitchen and washer/dryer are just soooo convenient.

 

[Saxton]

I agree that a home equity loan is probably the way to go and if you belong to a credit union you may want to start there - typically the rates at mine are better than the banks. I don't know what Disney charges for financing but you may want to contact them just for a point of comparison. I believe Disney is selling sold out resorts for $92/point and as an example, OKW resale is going between $72-75 right now. Resale with a home equity is probably the best option but take your time and get all the information first. When I purchased I was inclined to just go directly through Disney (I was anxious!!) but I took some time and saved quite a bit via resale.

 

[T.E. Yeary]

I just posted this on the boards. Just in case you miss it, here goes.

This information was just faxed 7/28/05 to The Timeshare Store, Inc. from Tammac Financial Corp.

Effective February 5, 2005

TAMMAC FINANCIAL CORP.
Basic Lending Guidelines

Lowest Rate 10.99% - minimum 10% down, excellent credit and debt to income 45% or less

Rate starts at 11.74% with less than 10%

Rates would adjust higher if not within those guidelines.

Loan term guidelines-
2,000.00 - 2,499.00 24 months
2,500.00 - 2,999.99 36 months
3,000.00 - 4,999.99 48 months
10,000.00 - 14,999.99 72 months
15,000.00 - 25,000.00 84 months

There are no fees charged and no prepayment penalties.

NOTE
The loan can be made for the purchase price, 1st year's maintenance fee and closing costs.
The 10.99% rate is available with 10% down of the TOTAL cost for qualified buyers.

Automatic denial for foreclosure or repossession

Automatic denial for delinquent or charged-off student loans

Will consider bankruptcy after 3 years with clean credit since bankruptcy

Monthly debt to income ratio should be 45% or less

ESTIMATED MONTHLY PAYMENTS
Purchase Price $3,000
10% Down 300
LOAN AMOUNT 2,700
10.99% for 36 months $92.99

Purchase Price $8,000
10% Down 800
LOAN AMOUNT 7,200
10.99% for 60 months $156.45

Purchase Price $12,000
10% Down 1,200
LOAN AMOUNT 10,800
10.99% for 72 months $205.43

Purchase Price $18,000
10% Down 1,800
LOAN AMOUNT 16,200
10.99% for 84 months $277.19

Tammac also included a payment schedule for those wanting 100% financing, rates start at 11.74%

Note from Tom:
This type of financing could be a benefit to those who are wanting to purchase that perfect package that just came along and you know you might have money coming in the future, tax refunds, inheritance, insurance settlement, or a better loan with lower interest rates.
Since Tammac's loans have NO prepayment penalty, you could use their money for a short period of time, paying very little in interest, pay off Tammac with your windfall and everybody wins!

I hope this information will be helpful.

Thomas E. Yeary (Tom)
Owner/Broker












*

 

[kangaroodle]

We bought into OKW back in 1994 (free park tickets each visit until 2000 was the incentive to buy at that time!) We charged our purchase to airline miles and paid off the credit card with a home equity loan. We ended up getting free airline tickets because of the mileage, and a tax write-off with the home equity loan. That was actually our sales person's idea! OKW does have the BIGGEST rooms and the least points needed/night. But, Shhhhh! We don't want everyone to know our secret!

 

[keishashadow]

Why not go for 2 studios at a resort that takes less points (i.e. Old Key West) instead of a 2 br? We decided to go slow, purchase a small resale for cash, and will add on once we decide where else we'd like to have home field advantage - or if they ever add on @ the Contemporary . If we find we need more points before we do add on, there's always the borrowing option or rent/transfer of points from another member. Good luck.

 

[NYMomof4]

I'm the OP and just wanted to say thank you for all the great advice! I really see the value of DVC for our family since we will pretty much always need 2 rooms which is still about $200/night at a value. We are visiting at the end of the month so I may take a tour. Thanks, Robin

 

[JimMIA]

You'll find the SSR tour helpful and informative...and no pressure.

If you get a chance, drop by one or more of the other resorts, go to the front desk, and ask to see any rooms they can show you. That, plus walking around all of the resorts (including SSR, because you won't see much of the resort on the tour), will give you a much better idea of what DVC is about.

Good luck.

 

[Disney Doll]

If you're thinking that you don't want to buy at SSR, then you would probably do better to do a resale, since availability of other DVC resorts through Disney is probably slim. Disney does have some contracts at other DVC resorts which they acquire through ROFR, but the "pickins are slim".

As far as financing a resale, I've heard of a few ways:
1. Home equity loan
2. Disney VISA purchase to get rewards points which then gets paid off with a home equity loan, which gets you a tax break
3. Home equity loan, which gets you a tax break
4. Cash
5. The loan program that TR Yeary posted above
6. Refinancing your primary residence for enough to cover the DVC purchase.

 

[Lisa P.]

Why not go for 2 studios at a resort that takes less points (i.e. Old Key West) instead of a 2 br?

There are no connecting studios at any DVC resorts, so this may not work for families with children.

Also, the OP mentioned spending $3,500 for a vacation at POR. When comparing your costs and your stays, remember that you are only comparing the cost of lodging, not the cost of your entire vacation. With or without DVC, you still have to pay for food, transportation, shopping, etc. 5 nights of points in a 2BR would be compared with 5 nights of lodging for your family. Depending on the time of year and days of the week, either option - 2 moderate rooms or a DVC 2BR - could concievably come out the better deal.