DVC Financing and Approval

[smchan]

Originally posted by ellenmiele

20% down, balance over 10 years is 9.75%
10% down, balance over 3 years is 13.00%
10% down, balance over 10 years is 14.50%

*Ouch* That's worse than some credit cards.

Assuming 150 pts @ $89/pt, 10% down over 10 years would equate to $1,700 interest in the first year and $10,800 interest over 10 years on a montly payment of $190.18 and downpayment of $1,350.

Lump in maintenance @ $4/pt = $600/year * 10 years = $6,000.

So thats:
$13,350 principal + downpayment ($89*150)
$10,800 interest
$ 6,000 maintenance
--------------------------
$30,150 for the first 10 years of ownership *or*
$3,015/year

20% down over 10 years yields $6,100 total interest on a payment of $139.66.

Are you certain these interest rates are correct?

Thanks,
Sam

 

[elfbo]

The payment for 20% down for 150 points is 149$ a month. Total interest around 3500$ if no prepayments are made. I dont have the paper with all the rates in front of me, but thats what we have.

 

[NUHuskies#1]

Yeehaw- We are new owners at SSR! Thanks for all your support and advice. I love this board

 

[Lou Rindner]

Just be aware that the rate of interest is very high. We saved and saved and did not finance which I know is not the case for most but if you can get a loan which you can write off on your taxes try that ave....

 

[RobDoc]

The DVC interest rate is actually very competitive for timeshare purchases. In this case, it will represent a mortgage where the interest may be claimed for tax purposes (check with your tax advisor).

While there are other sources for lower rates, make sure they are deductible before assuming that they are a better option than what is available thru DVC.

A Home Equity loan will probably be the best option - both for low rate and deductibility. Another option would be a 2nd mortgage on your home loan- this can even offer a fixed rate lower than DVC and is still deductible. While a few credit cards may offer a lower rate, they will not likely be deductible since they are not secured by the property.

Be sure to run the numbers before deciding against the DVC mortgage.

Enjoy!

 

[jimmytammy]

Congrats and soon to be early Welcome Home!!