Financing question

[DisneyFreaks]

Last evening our neighbor's DD who owns 200 SSR pts. told us she is planning on adding on. She wants to buy 75 (she actually needs 77) more SSR points. I told her she would have to pay the full price since 75pts. is under the amount for the current incentive, correct? She is planning on financing with 10% down payment. She is wondering what her monthly payment would be right now with 10 years financing. I am no math wizard and our own add on was a bit different so I said I would inquire on these boards. Can someone figure this out for her? Also, it is possible to purchase an odd number of points right? I hope I didn't give her the wrong information.

 

[Chuck S]

Yes, she can purchase 77 points. Any amount over 25 is allowed. 50 or more points is required for financing.

As far as I know, she will need to pay full price for any contract under the incentive point level.

I would contact her guide for the amount of the monthly payment, as the interest rate may change between now and when she purchases, given the way regular mortgage rates are changing.

 

[ZekeKelso]

She should contact a guide for the actual numbers. But we can give her ballpark answers. The following values use standard financing calculations - IIRC, Disney does something a bit weird that may make the numbers off by a $1 or $2. And, yes, prices and interest rates may change.

75 points @ $104/point = $7,800

Finance @ 10% down with 10 years of payments at 10.75%

= $780 down and $95.71 / month

But it really doesn't make a lot of sense to buy 75 SSR points right now. At 100 points, she gets a $10/point incentive, and a $500 gift card. To make the comparison fair. let's add $500 to her down payment

100 points @ $94/point = 9,400

Finance with $1,280 down (780+500) with 10 years of payments at 10.75%

Payment = $110.71 month

That's an extra $15/month for 25 points. Nice deal. Of course, she'll have to pay maintenance dues on the extra points each year, and I've assumed that she can chip in an extra $500 toward the down payment since she's getting the $500 gift card (which won't be worth $500 to everyone).

 

[DisneyFreaks]

Thanks Chuck and ZekeKelso. That's what she needed. Just ballpark figures to help them decide. I personally think buying the extra 25 pts. would be a way better deal. Especially with the $500 gift card. I know they always buy the DDP. Do you know if they could get it with that gift card? Not sure about their finances but I think that would totally sell her DH. LoL