Financing Direct

[JasD]

Weighing my different options and I’m considering buying OKW direct for the 2057 expiration date. My question is since it would cost more I might put half down and finance the rest. Does anyone know if there are penalties for paying the loan off early?

 

[Troy821]

Weighing my different options and I’m considering buying OKW direct for the 2057 expiration date. My question is since it would cost more I might put half down and finance the rest. Does anyone know if there are penalties for paying the loan off early?

There are no penalties. You can pay it off when you wish.

 

[erionm]

Does anyone know if there are penalties for paying the loan off early?

No penalties.

 

[Matty B13]

The real penalty is the crazy high interest rate they charge...... make sure to look around for financing options that are better.

 

[BillPA]

The penalty is if you DON'T pay it off. 10%+ is no deal.

 

[gharter]

Financing is your choice, but you will find many people here that do not recommend financing.
Whether financing makes sense for you, is your choice. As far as paying off early, it all depends on the terms of the loan you take out. In general, there is not a penalty for paying off early.

 

[Sandisw]

If you own a Disney Visa Card, you can get 6 months, 0% interest for any part of the cost you put down. We did that when we first bought in direct. Charged half, paid cash for the other half. Then, when 6 months was up, paid off the card. Just a way not to take it all out of savings at once. But, as mentioned, you can make extra payments or pay off balance anytime you want!

 

[stewart715]

Financing is your choice, but you will find many people here that do not recommend financing.
Whether financing makes sense for you, is your choice. As far as paying off early, it all depends on the terms of the loan you take out. In general, there is not a penalty for paying off early.

I agree with this. I do believe a lot of people "finance" as to just pay it off in large chunks over 1-2 or even 3 years and not all 10. Still pay some interest (but not nearly as much) but it takes the burden off of dumping the cash in one shot. Direct financing makes this really easy (instant over phone approval); especially if you don't want anything that will affect your credit score (which DVC loans do not).

 

[Jack_Sparrow_NJ]

I agree with this. I do believe a lot of people "finance" as to just pay it off in large chunks over 1-2 or even 3 years and not all 10. Still pay some interest (but not nearly as much) but it takes the burden off of dumping the cash in one shot. Direct financing makes this really easy (instant over phone approval); especially if you don't want anything that will affect your credit score (which DVC loans do not).

DVC does put a hard pull on your credit score though

 

[skippytx]

If you're putting 50% down on DVC, explore other financing besides the ridiculous APR they charge. You probably have access to other financing options with much more favorable terms. I won't make a blanket statement against financing DVC, but there's a lot of cheap money out there to borrow.

 

[MICKIMINI]

You don't indicate how many points you are considering. How about looking for an OKW resale with 2057 end date...they are out there. Buy what you can afford now (look for banked points) and deposit the cash you would have paid in monthly financing charges (amortization table can figure it for you) and then buy another contract when you have enough tucked aside - basically you are adding on for FREE.

 

[JasD]

Most likely I won’t finance. I’ve begun putting money aside to save up. If I did I would not want a term longer than 2 years as the interest is very high. We have paid all our vehicles off early without penalty here in Maryland and I was curious if the DVC loans worked that way too.

 

[MICKIMINI]

Most likely I won’t finance. I’ve begun putting money aside to save up. If I did I would not want a term longer than 2 years as the interest is very high. We have paid all our vehicles off early without penalty here in Maryland and I was curious if the DVC loans worked that way too.

Great job! I don't think there is any penalty to paying off DVC early...and SO many great vacations to look forward to!

 

[4luv2cdisney]

Most likely I won’t finance. I’ve begun putting money aside to save up. If I did I would not want a term longer than 2 years as the interest is very high. We have paid all our vehicles off early without penalty here in Maryland and I was curious if the DVC loans worked that way too.

You could purchase on a Disney Chase Visa and get 0% for 6 months... they will typically space out a deposit and final payment a bit, so you will have a good 7 months to repay.

Whatever is not paid, transfer to whatever 0% offer you can get on a current credit card. I am regularly offered balance transfers at a flat fee of 2% with 0% interest for 18 months thereafter. (Capital One is constantly offering me this on my existing card.)

So, let's say your purchase is $15K... you earn either $150 or $300 on a Disney Visa, then you pay off say $10K in 6-7 months. You transfer $5k for a fee of $100 to a card and have a leisurely 18 months to pay that off. You still come out ahead because you earned $150-$300 on the initial charge.

 

[mjlash22]

Most likely I won’t finance. I’ve begun putting money aside to save up. If I did I would not want a term longer than 2 years as the interest is very high. We have paid all our vehicles off early without penalty here in Maryland and I was curious if the DVC loans worked that way too.

If you're looking for 2 year or less payoff, you may still find it as being a good value for your family. 2 recommendations I have, as I just went through the purchasing process.

1. Really spend the time doing the math. Going rate for direct financing is 14%+ (excellent credit) no mater how much you put down. Factor those interest rate charges into your annual value/cost associated with your contract.

2. Look at other banks or financial institutions which will more than likely offer a lower rate for a personal loan. Or do what I did...I had 80% of total cost cash in hand. I charged the whole thing to one of my travel credit cards and then did a promotional balance transfer (12 months 0%, with a 2% fee). This worked out better for my situation, instead of getting a 9% personal loan for what will more than likely be paid off within the year.

 

[Louis morrell]

Are you sure about that 14%? I just did a direct purchase last month and while I had no intention to finance the financing information sent by my guide offered me 8% with a 20% down payment and 11% with 10% down.

 

[mjlash22]

Are you sure about that 14%? I just did a direct purchase last month and while I had no intention to finance the financing information sent by my guide offered me 8% with a 20% down payment and 11% with 10% down.

The information the Vacation Guide gave me showed 14% for almost every resort. He emailed me this interactive pamphlet where you could click on the resorts and see the pricing info. This was without even pulling my credit. True, this could be a rate that constantly changes, but based on the info I had, it looked like if I wanted to finance through Disney, the going rate was 14% for excellent credit.

 

[Louis morrell]

You made me go back and look again. The offer for SSR was as I stated above but my memory missed just a little. It was 8.99% with 20% down.

 

[Philsfan77]

if you're financing...explore other options...HELOC...personal loan...any of those will have better rates than Disney.

 

[tntbrd]

if you're financing...explore other options...HELOC...personal loan...any of those will have better rates than Disney.

Agreed, LightStream was around 4.5% on the low end last I looked which was a couple of months ago.