DVC Financing Percent Increase

[TAKitty]

Well, I had to call quality control, and the guy on the phone said something about an increase in the loan percent that they now offer. Apparently I got in under the lower percent 9.75 (I think). He also said that your guide is going to run your credit instantly and tell you if you have been approved by phone. New members won't have to wait or all to see if they have been approved. Just something interesting to pass along to those buying soon.

 

[Rozzie]

I was thinking that I read somewhere there will be 2 tiers for finance rate. One for excellent credit, the other for spotty credit. If this is true, I think it is only fair. I worked very hard to obtain an excellent credit rating, and I think one rate for everybody was a little odd. JMHO, of course!

thanks for passing along the info! Intresting on the instant approval thing....

 

[Anewman]

I was thinking that I read somewhere there will be 2 tiers for finance rate. One for excellent credit, the other for spotty credit. If this is true, I think it is only fair. I worked very hard to obtain an excellent credit rating, and I think one rate for everybody was a little odd. JMHO, of course!

thanks for passing along the info! Intresting on the instant approval thing....

While I agree to a point, yes not everyones credit is GREAT.

But Disneys rate was already high, I would hate to think that they are creating a second HIGHER(rate) tier. It would be great if they created a lower rate tier to reward those with great credit.

 

[Rozzie]

While I agree to a point, yes not everyones credit is GREAT.

But Disneys rate was already high, I would hate to think that they are creating a second HIGHER(rate) tier. It would be great if they created a lower rate tier to reward those with great credit.

yes, this is what I meant to say! LOL! Yes, they really need a lower rate tier!!!!!

 

[Kick Save]

I thought I'd read that the two different rates were based on your downpayment. Put 20% down and get the lower rate, put 10% down and get the higher rate. I could be mistaken, but I thought I'd read that here.

 

[Showe]

so what is the current rate at this time ?

 

[Boston5602]

AS someone who just bought BWV direct there is two levels of interest 9.95% and a higher one I think guide said it was 13 or 13.5% and if you were buying SSR you could put down 10% otherwise guide said had to put down 20% I don't know if thats everyone or just me but thats what I know

 

[Jen D]

AS someone who just bought BWV direct there is two levels of interest 9.95% and a higher one I think guide said it was 13 or 13.5% and if you were buying SSR you could put down 10% otherwise guide said had to put down 20% I don't know if thats everyone or just me but thats what I know

Hmm, maybe the increase was already in effect.

My deal was 9.75% with auto-deduct (which we did), 10.75% without.

We put 10% out of pocket but with the incentives applied 25% total was put down.

I never heard anything about a 13.5% rate, yikes.

 

[DisneylandGuy22]

I purchased SSR in September and did a 30% Down payment and recieved a $1200 credit

I think the interest rate is lower if you do the direct withdrawl from a US bank account. I'm hoping to have it paid off by August.

 

[YoMickey]

The finance info was not solicited by me but was provided to me at 5% for 1 year and 9.9% for 5 or 10 year terms. Never mentioned downpayment. Also, my calculations did not make sense for financing. You end up losing the advantage of owning. At those rates, it makes better sense to open an acocunt pay yourself the monthly payment and earn interest on it rather than finance through Disney. Pay as you go rather than finance. I'm not a financial guy so my equations may be wrong. Anyone out there is welcome to verify or disprove my conclusion..

I assumed a rate of inflation at 3%. And a return on your savings at 6-7%.
I find it hard to beleive that hotel rooms will increase at 8% like some have said.

It may make sense to get a more favorable rate from your priamry local lender. 9.9% is steep.

 

[Groucho]

The finance info was not solicited by me but was provided to me at 5% for 1 year and 9.9% for 5 or 10 year terms. Never mentioned downpayment. Also, my calculations did not make sense for financing. You end up losing the advantage of owning. At those rates, it makes better sense to open an acocunt pay yourself the monthly payment and earn interest on it rather than finance through Disney. Pay as you go rather than finance. I'm not a financial guy so my equations may be wrong. Anyone out there is welcome to verify or disprove my conclusion..

I assumed a rate of inflation at 3%. And a return on your savings at 6-7%.
I find it hard to beleive that hotel rooms will increase at 8% like some have said.

It may make sense to get a more favorable rate from your priamry local lender. 9.9% is steep.

According to the paperwork I was given:
One year (requires 50% downpayment): .4.95% for direct debit, 5.95% for statements
3-10 years (requires 20% down): 9.75% for direct debit, 10.75% for statements

The F&F promotion had the same rates but there was no one-year option, just 10% down plus the 15% that they offered.

My guide had mentioned that rates would be going up and that the longer-term financing (ie, 10 years) will be at a higher rate than the shorter-term (say, 5 years.) I think he mentioned something like 13 or 14%.

The 9.75 isn't real low but is lower than most timeshare financings from what I've seen. (Which admittedly isn't a lot as I haven't seriously looked at other timeshares, but it seems that most are around 12% or so.)

 

[senecabeach]

I just happen to have received a promo package on Friday (for a friend..interested in DVC)

Enclosed in this "hard cover book" + dvd are 2 spreadsheets:

"Saratoga Savings Credit"

Standard Financing:

50%down, 4.95%, 1 yr.
10%down, 13.50%, 5yrs/10yrs.

Preferred Financing:

50%down, 4.95%, 1 yr.
10%down, 9.95%, 5yrs/10yrs.

It also includes an $8. credit column...so I guess that's the incentive going forward.

BTW.... On the other side of these 2 spreadsheets it has titled:
"Magical Beginnings Credit" and all the %ages are the same.
It seems the only difference is a $13. credit column....so
.....what is the $13. column for??

 

[ajksmom]

It's supposed to have something to do with selling back your points...don't know if that means 2005 or 2006 though.

 

[EmyRose]

As I understood it (and I may be wrong) with the Magical Beginnings, your points would start with the current use year. With the Saratoga Savings credit, you pay more but you get a free year's worth of points from the previous use year. But I am confused; with a Dec Use Year, are your 2005 points the one's that you get in Dec 2005 or the ones deposited in Dec 2004?