Financing A DVC Membership

[wonka27]

Hello all! I am a first time poster and seriously considering a DVC membership.

My bride of 8 days and myself honeymooned at Disney (Coronado Springs) for a week and just returned home yesterday.

While at Disney we checked out the DVC. She has been to Disney at least 10 times in her life and absolutely loves it. I personally wish there were "bigger and badder" rides, but it looks like they are working on that

If we buy, we are looking at 150 points from what I now learned will be Sarasota Springs. We were not told the 11/7 rule, so I am glad I popped on here. This site is a wealth of information.

My first (of probably many questions in the next few days) is do you guys think it is worth financing the DVC. They are offering a $1200 credit on 150 points and a UY starting on Feb 1. They are offering 9.95%, which I thought was steep, but I think we could afford.

How many of you have financed? Is it worth it?

Thanks for your help!

 

[bpmorley]

Are they offering that credit only if you finance? If not, take the credit and get your own loan. Rates have creeped up, but not that high. If the credit is just for financing through them, you would have to do that math to see which one is the better deal.

PS. I didn't finace, but I had a HELOC that was 4.1% at the time.

 

[wonka27]

Are they offering that credit only if you finance? If not, take the credit and get your own loan. Rates have creeped up, but not that high. If the credit is just for financing through them, you would have to do that math to see which one is the better deal.

PS. I didn't finace, but I had a HELOC that was 4.1% at the time.

I will have to look into what I can get in a loan.

Unfortunately when we bought our house we financed almost 100% so we could keep the cash for furniture and a few upgrades. Home Equity will not work for me right now (but I may ask anyway if the value of my house appreciated that much).

I think the credit is irregardless of financing.

Any other thoughts/opinions?

 

[hoopsrob]

Credit is independent of financing, at least the offer we received 2 weeks ago. It's really just the $8 per point credit which takes the $101 down to $93 per point.

 

[byoung]

Cann't help with the loan, but would like to welcome you to the DIS!

 

[tmt martins]

When I did the math as what I was spending for room only the past 5 years.

I'm still coming out ahead at the 8 year mark with finance through Disney and it's locked in as the price of rooms will climb.

Also I can pay on princable or just pay it off at any time .

I just got back and it was nice not having to worry about saving for the trip or charging it and paying it off. I know whats coming out every month so it's easier to budget.

I just called in the ADR's for my Dec trip .The DVC discount on the PAP made a big difference as well as the DDE card we saved over $ 500 on those alone for the 3 of us + 2 eating and that was with a few ADRs and some call right while in the park that day.

Congrats on your marriage (hit my 14th in a few weeks) and good luck with your decision .

I just wished we would have just bit the bullet 5 years ago but it would have been a bit harder.

 

[rubbergypsy]

i believe the 9.95% is the lowest or preferred financing right now-2 months ago it was 9.75%, i financed through disney and perhaps down the road will just pay it off in one lump, but right now, with a decent down payment and the 1200 credit, it was not too bad.

 

[OKWMom]

We financed as we could not have purchased any other way and have not regretted it. We had an annual trip before purchasing into the DVC and we only wish we had purchased when we first considered it.

 

[Juliet25]

My DH and I financed our purchase back in March. We were on 10% down/10 years to repay, and the interest rate was 10.75%. Since then, we took out a home equity loan with a lower rate and did it that way.

We honeymooned at Disney too and briefly looked at joining 5 years ago. I so wish we had then! It only gets more expensive.

 

[MinMouse]

If you can swing it you may want to ask about their one year financing. Previously they have offered it at 4.95% with a 50% down payment.

Congratulations on your marriage. We also honeymooned in Disney (almost 15 years ago) and as others have said wished we purchased our DVC then!

 

[bpmorley]

When we went in 2000 I saw the DVC Kiosk on the day we were leaving. I wish I would have noticed it earlier in the trip. You're right it only got more expensive. And I would probably own at more than one resort.

 

[Starshine]

We also honeymooned in WDW, and loved it so much that we purchased 150 points as my wedding present! We're coming up on our 5 year anniversary, and haven't regretted a moment. We financed through Disney, and although the interest rate is a little high, it was very very easy to do it that way, and I've never seen the loan show up on our credit report.

You could always initially finance through Disney and then pay it off with a cheaper rate HE loan once your home value appreciates more.

 

[wonka27]

Thank you all for the advice. It is great that there are so many wonderful people on this board willing to help!

I've decided that if we do this, we will just take the Disney financing. Looking at our budget, we have some extra money each month that we can use to pay it down rather quickly (most likely 3-5 years instead of 10). At this time, we have no kids and bought a house that was smaller and less expensive than we could have afforded (which we did for the purpose of kids, vacations, etc. down the road...I hate to struggle with money).

I'm glad we are considering this now. Our honeymoon is the first I ever heard of the DVC, and it sounds like many of you wish you would have jumped at the first glance of it. I can see some kind of long term value financially and security knowing you have vacations coming to you each and every year.

Thanks again for all the help! I'm sure in the coming days I will have more once our contract arrives.

 

[happy2bme34]

My first (of probably many questions in the next few days) is do you guys think it is worth financing the DVC. They are offering a $1200 credit on 150 points and a UY starting on Feb 1. They are offering 9.95%, which I thought was steep, but I think we could afford.

My DH and I are also considering DVC and are probably going with the finance option. I would like to know it they can put the $1200 credit toward your down payment? I read somewhere where they did that. Also I would like to know what the UY is that is starting in Feb?

thanks

 

[*elaine*]

They do put the $1200 (actually $8 per point if you want '06 points or $13 per point if you don't want points until '07, so it may be more money) towards your downpayment AFTER you have put up at least 10% as a downpayment.

 

[bpmorley]

My DH and I are also considering DVC and are probably going with the finance option. I would like to know it they can put the $1200 credit toward your down payment? I read somewhere where they did that. Also I would like to know what the UY is that is starting in Feb?

thanks

They'll use the $1200 and you have to make up the difference for the 10%(I think) When we took the tour our guide told us that we could get the credit for that year and all we had to do was give them $500. That was 2004, it may be more now. After the credits we got it came out to $74/points.

Congradulations and WELCOME HOME.

PS. There seems to be alot of people that honeymooned in WDW. We got married and honeymooned last year.

 

[Starshine]

They'll use the $1200 and you have to make up the difference for the 10%(I think)

When we purchased they did the same for us toward the down payment, but I also remember having to put down $500 so maybe that's the minimum you have to pay out of pocket (or at least it was back then it may be different now)?

Another thing that helps with the financing (at least a little) is that we always get a 1099-INT statement and since we itemize we can deduct it from our taxes.

 

[*elaine*]

Maybe it has changed since last month, or my guide was wrong, but he was clear with us that if we were buying at Saratoga Springs that we would have to come up with the 10% downpayment and then the incentive $8 per point would be added on top of that.

We decided to buy at BWV, so it ended up being a moot point.

 

[bpmorley]

Star, we had to do the same thing. We were staying at CBR in 04 when we took the tour. We had to give them $500 on the credit card to get those perks. The rest is pretty vague after that. I had the HELOC and then we came into some $$ and paid that off. I just can't remember if we had to send them a check for more as a down payment after the 500. If I knew I was coming into that money I would have put the whole thing on my disney visa and got the rewards. oh well, you live, you learn.