Financing DVC Purchase

[JimNY]

I'm in the early stages of researching the DVC ownership after just getting back from WDW for 8 days. One of the questions I have is whether or not there is finanacing available through DVC for the purchase price or is the purchaser normally responsible for arranging this on his own. Thanks.

Jim

 

[K&TLoveDisney]

Yes. You can finance thru Disney. I don't know what the current interest rates are. We bought in 2001 used their financing for 10 years (deducted directly from one of our accounts). Bought a second contract in 2002 and did the same. Paid that one off about a year later. Also, paid extra on the first contract and with any luck will have that one paid off this year.

There are no penalties for paying early and you can pay as much extra as you want whenever you want.

Best to contact your guide and they will explain everything to you.

Good Luck!

 

[Deb in IA]

You may want to check around though, Jim.

We got a better rate from our bank here at home, and eventually rolled it into our mortage when we refinanced our home at those really low interest rates several months ago.


So when we purchased our DVC, we put it on our credit card -- we have a Mileage Plus VISA, so we LOVED getting all those Frequent Flyer miles.
Then, when we got home, we went to our bank to arrange our loan, so that when the VISA bill came (!), we had the money in the bank, ready to go.

 

[BCVOwner in MA]

I just talked to my Guide yesterday about an add-on. The financing rates she quoted were 10.75% with a 10% downpayment and 9.75% with a 20% downpayment.

 

[Happy Birthday Cat]

Hi JimNY, welcome to the Dis-Boards. Two nice things about Disney financing is that it is very easy to get and they don't report to the credit agencies if you stay current on your loan.

HBC

 

[Disney Doll]

When we bought our first contract in 1997, we financed it through Disney, took a 10 year loan. Our logic was that the 10 year loan had the lowest monthly payment. We always tried to pay more than the minimum monthly payemnt, but in those months when were a little "short", all we HAD to come up with was the low payment. Of course, interest rates at the time were pretty comparable to other loans.

Some people use a home equity line of credit, part of which can be written off your taxes, I think. Others get a personal loan through their bank, because often the interest is less than through Disney. We know one couple who used their Disney VISA to purchase to get the dollars on there, but had the cash available to pay it off the next month. Thye are both very well-paid attorneys! The average person probably can't do that.

If I were to purchase now, I would probably put it on my Disney VISA to get the points, and then use my home equity line of credit to pay the VISA bill when it came, and then pay off the home equity line. That way oyu get the points on the VISA card, and the benefit of being able to write off some of the home equity interest.