Financing Options for DVC

[Yakety76]

I am looking at purchasing 160 pts at AKV and was wandering what current DVC members reccommended for financing options. Please let me know your thoughts.

 

[GusMan]

I found that the financing through DVC was a decent rate and terms and the process was real easy. You can check your loan status online as well and make additional payments to principal if you wanted to as well.

There may be some cheaper options out there, but I think it also depends on what works best for your personal financial situation.

 

[AKV707]

I also also gind the DVC financing to be simple, quick and easy to manage. I am paying extra principal every month to knock the loan down faster. Going through DVC is by far the easiest way to go.

 

[G8RFAN]

Boy that is a loaded question. Your present financial situation has everything to do with the answer. Some people who have an availability with an equity line on their residence and can still take full advantage of the tax advantages may want to elect that route. Some people have significant holdings in securities and may want to get a non-purpose loan and leverage that. Some people have the cash and may want a simple cash secured term loan that has a CD pledged or hypothecated to it. Disney's loan program was fair, however, I thought it was a little on the expensive side compared to a home equity loan. However, it is cheaper than the unsecured credit card debt out there and would never recommend using revolving credit for a long term purchase.

Except in my case. We took advantage of a special promotion from DVC on a pre-construction sale for SSR with no interest accruing or payments due for I think I recall a period of time until we could start using the points. We were then going to use cash to pay it off when that happened, but then I got an insane offer from one of my credit cards for 10 months of no interest except for a $75 initial fee on balance transfers. So we paid it off our DVC with the card and then spread our payments over 10 months out of cashflow. Ultimately, it felt like we never dipped into our savings when it was paid off even tho if we forced ourselves to be as disciplined, we would have saved obviously the same amount.

 

[fatcat04]

DVC financing was easy as pie, made it real easy to sign our lives away to the Mouse ... decent rate too as long as you have good credit. No pre-payment penalty so you can pay it in a year or 5 or whatever. But general financing is figured for 10 years with a 10% down.

They send you the paper work via FedEx and you get a snazzy DVC tote baggie and your member materials in a cute package. Date by the palm trees, sign by the Mickey Mouse ears, include your voided checks for auto draft payments, get a notary to witness/notarize the signing. We went to our local FedEx/Kinkos for the notary. Cost us $2.62. Put everything in the postage paid FedEx envelope, drop it in a box, and Welcome Home. The hardest part for us was driving to the notary and signing our names about 12 times.

 

[disneymania10]

Some people who have an availability with an equity line on their residence and can still take full advantage of the tax advantages may want to elect that route.

Thats what we did. The interest on our Equity credit is quite a bit lower than the 10.75% ( I think thats what it is) that disney has. However if we didn't allready have the equity line set up we probably would have went through Disney. They do make it quick and easy for you.

 

[AKV707]

And while I am not a tax expert, I believe that, as long as you do not have a second home already, the interest on your DVC loan will be tax deductible.