Financing Add Ons..Any info

[hampshire mickey]

Thinking about doing an add on at the BCV. What financing is available? There was nothing on the DVC site about rates or money down. Any help is appreciated.

 

[MarylandPizzaman]

Directly through Disney I know there is a 50 points minimum for finance. for 150 points it was 9.75% but if you do less I'am sure that % goes up.

 

[jaysue]

I think it is 9.75% for 50pts and up for any term longer than 1 year? Also that rate is based on preautorised debit from your chequing account

Thanks
jaysue

 

[5infam]

Last I saw you can get as few as 50 points (25 if you pay cash) and the rate with automatic withdrawl is 9.75% (10.75% through standard monthly mail invoicing).

When I started this post I thought I had the papers from Disney handy...but I can't find them now. I believe though that you need either 10% or 20% down.

 

[anniet]

Just sent the papers back to Disney for a 50 point add on a few weeks ago. They will do the closing on Monday. I'm having it automatically withdrawn from my savings account and the rate is 9.75% for ten years. I think the payment is around $46 per month. I will be sending them checks intermittently to pay it off sooner, though. Hope to have it paid off in less than 3.

 

[walter]

Would it not be cheaper in the long run to obtain a home equity line of credit and pay only an interest rate of approx. 4.75% or less?

 

[eva]

Walter, yes it is much cheaper if you have the equity in your home. We just refinanced our loan 2 years ago to pay for some major remodeling. This put us up to almost our 80% of borrowed equity. If we refinanced right now to pay for an add-on it would put us over the 80% mark and most lenders require mortgage insurance when you borrow over 80%. When we compared the insurance cost against financing through DVC we found that the refinancing of the mortgage would actually cost us more. What we are actually looking at is using a low interest credit card and paying it off in 2-3 years. My husband is a credit card guru. If I know him I bet we don't end up paying any interest on the add-on we just purchased yesterday.

 

[hampshire mickey]

Thank you for all of these ideas. If I remember you can finance at 1 year for a much cheaper rate? Is this correct? The credit card game as mentioned above is also a consideration but you have to watch the fine print. I have one special that is 3 percent interest and then in very fine print it goes to 19.9 after 3 months. MONEY