DVC interest rate?

[Luvdisney]

I've got a call in to my guide, but thought you guys might be able to tell me before I get a call back. Thinking about adding on, like who isn't,. I think my DW may be coming around to adding on. Was wonder what the current DVC interest rate is and for how many years, anyone know?

 

[floridafam]

How many years do you want to finance for?

I believe that it is 10.75 for 10 years-they lower this to 9.75 if you use direct debit.

It is 5.95 for 1 yr-they lower this to 4.95 if you use direct debit.

I don't know what the rates are on anything inbetween.

 

[princetonnj]

Just spoke with a guide today

the rates are the same for 3,5,7 & 10 yrs.

Rate seems high to me. Has anyone financed thru other firms or used a home equity instead?

Originally posted by floridafam
How many years do you want to finance for?

I believe that it is 10.75 for 10 years-they lower this to 9.75 if you use direct debit.

It is 5.95 for 1 yr-they lower this to 4.95 if you use direct debit.

I don't know what the rates are on anything inbetween.

 

[pstepka]

I've read that Disney does not report to credit agencies. Does that mean that if you finance through Disney rather than using a home equity loan, your debt to income ratio on paper would be lower?

Also...I would assume that financing through Disney would give you smaller monthly payments over putting it on a home equity loan...correct?

We're debating which way to go. We're not concerned with getting it paid off ASAP, but more concerned with not being cash-poor while we're financing.

Thanks,
Pam

 

[princetonnj]

Home Equity rates in cleveland are averaging 7% (www.bankrate.com) so a Home Eq. loan is approx 2.75% less than the Disney rate. If you are willing to go with a Home Eq. Line of Credit the beginning rate is around 4% but is variable and will most likely go up in the future.

Factor in the possibility of deducting the interest on your taxes makes the Home Eq. even more attractive.

Just because a loan is not reported on you credit report does not mean that it does not exist. If you did not report it on any subsequent loan applications it could be considered bank fraud (federal crime). Not a lawyer.

Bankrate.com has good loan calculators so you can see what the payments would be for various initerest rates and # of years.

Hope this helps.

 

[floridafam]

Do you really have to disclose the loan even though it does not appear on your credit report?

Anyone familiar with this recently?

Let's say we were going to buy a new home next year and we disclosed our Disney loan-do they figure that into your debt to income ratio or do they just want you to report it and they can factor it in or leave it out of the mix?

 

[disneycrazed139]

Good question--I would be very interested in knowing the answer to this if anyone is a mortgage specialist or has firstehand knowledge of same.

 

[Hygiene99]

we did not disclose the fact that we had a disney financed contract...... never heard a thing about it , hey we have the house now ..... would have gotten mortgage even if we had disclosed ... peter

 

[pstepka]

I thought that even with financing through DVC you could claim the interest, as it is a real estate loan. My thinking was that if I put, let's say 20,000 on a home equity loan, my payment would be probably 300.00+ per month. Is the payment for financing through DVC going to be less if I finance 20,000? I would think it would be if I were financing for 8-10 years.

Anyone know???

Pam

 

[Disney-Kim]

We did Disney financing. For us it was a LOT easier and less hassle than the home equity route. We also want to refinance our house this fall and don't want more debt on the loan. We bought 150 points. Our payment will be about $197 per month with the annual dues.
We are going to pay extra on the principal and try to get it paid off a lot faster and we may decide to pay it off next year with a home equity loan.
I hope this helps.

 

[pstepka]

Kim,
Yes that helps a ton! So, you pay 200.00/month and that INCLUDES your yearly dues? That's not bad at all! I was expecting 200.00 PLUS another 100+ for dues.

Maybe we'll have to jump on the SS deal before the Oct 31 deadline!

Pam