DVC Disney Loan refinancing

[donkortajr]

Has anyone ever tried to refiance a Disney loan for DVC?
The banks say they won't touch it since they consider it not tied ot a specific property.
We only have 8 years left on a 10 year loan, but 11.75% just bites.

 

[skelfbsfb]

Disneys interest rate was so high when we bought that I arranges a personal loan when I returned home and paid it over 5 years instead of the 10 years that Disney propose.

Im in the process of buying ad on point through resale and again I have arranged a personal loan by myself to finance this.

Can you not look at taking out a personal loan at a reduced interest rate, pay off disney hopefully leaving you better off.

 

[IknowDoYou?]

Disneys interest rate was so high when we bought that I arranges a personal loan when I returned home and paid it over 5 years instead of the 10 years that Disney propose.

Im in the process of buying ad on point through resale and again I have arranged a personal loan by myself to finance this.

Can you not look at taking out a personal loan at a reduced interest rate, pay off disney hopefully leaving you better off.

My understanding is that if you use a personal loan instead of the loan type Disney uses, you cannot take the loan interest off of your taxes. Can anyone confirm if that is true?

 

[skelfbsfb]

My understanding is that if you use a personal loan instead of the loan type Disney uses, you cannot take the loan interest off of your taxes. Can anyone confirm if that is true?

Sorry dont know of this. Hopefully someone with greater knowledge will be able to clarify.

 

[chalee94]

My understanding is that if you use a personal loan instead of the loan type Disney uses, you cannot take the loan interest off of your taxes. Can anyone confirm if that is true?

sounds right.

A few owners can deduct the interest expense on a timeshare loan. The interest is deductible only if the loan is secured by the timeshare as a mortgage and you deduct no other mortgage interest except on your primary home. Note that most timeshare loans don't qualify because they are written as consumer loans rather than as mortgages. Similarly, interest expense on credit card debt used to finance the purchase would not be deductible.

TUG advice on taxes and timeshares.

 

[Petraman]

As TUG quote mentions, the loan must be an actual "mortgage loan", not any other type of loan, simply because it is mortgage interest that is tax deductible.

 

[RobDoc]

If you have a HELOC you could use that to pay off the DVC loan and it may still qualify for the mortgage deduction - verify that with your personal tax advisor though.

 

[mike9950]

I know that 11.75% is a high rate, but I can assure you unless Disney allows you to refi it -- its going to be next to impossible to get a loan against it.

However, can you pay extra towards principal every month? if you do, you'll dramatically pay off this loan quicker and will save tons of interest monies.

Good luck!

 

[ladycop67]

We did a home equity loan, and the interest can be used for tax purposes.

 

[JimMIA]

My understanding is that if you use a personal loan instead of the loan type Disney uses, you cannot take the loan interest off of your taxes. Can anyone confirm if that is true?

It's true in most cases, but you should check with your tax professional to be sure.

That's really a minor consideration, though, compared to the very high interest rate. In actual tax savings, you're talking just a few dollars a year.

A home equity loan, as Doc suggested, would offer a much lower rate and would also present tax advantages.

 

[Brandis]

We took the Disney loan, which for foreigners, has a 11.75 APR over 10 years., since we can only buy DVC while at WDW or on a DVC cruise.

But as soon as we got home, I just got a regular loan from my bank with 5.9% APR over 3 years. A lot cheaper than with Disney

So within a couple of weeks I repaid the Disney loan in full.