Financing resale

[Mellie2162]

Just curious. We are thinking about buying resale and want to do it soon. Since we won't be buying from disney, how do you all finance your points? If you go through a bank and get a loan how do you do the loan since its on a timeshare. Am I making any sense at all? I hate to sound stupid but what kind of loan should we be looking for? Personal?

 

[Happy Birthday Cat]

The best loan would be a home equity loan. Some of all of the interest from that could be tax deductable. I have heard of many people who have used low interest credit cards to finance as well. There is one place that I know of that does finance timeshares that I have heard about on this board. It is called Tammac. Just click the link: Tammac

Banks generally don't understand DVC because they are used to people buying timeshares that depreciate in value. DVC is different and banks just don't get that.

Good luck.

HBC

 

[Dean]

Originally posted by Mellie2162
Just curious. We are thinking about buying resale and want to do it soon. Since we won't be buying from disney, how do you all finance your points? If you go through a bank and get a loan how do you do the loan since its on a timeshare. Am I making any sense at all? I hate to sound stupid but what kind of loan should we be looking for? Personal?

Normally banks, CU, etc won't finance a timeshare. There is one company that will, it's called Tammac at tammac.com. They're rates are very high. You could do a home loan and you could look for a credit card that has low rates. Last resort an unsecured loan at a bank or similar.

 

[helenabear]

We were lucky and were able to use a home equity loan for our timeshare. It was painless and the lowest interest out there possible. Not even the low interest credit cards could match it. Good luck to you!!

 

[rocketriter]

Do be cautious about home equity loans. They are "secured" loans, which means that if you default on your timeshare, the bank can come after your house. An unsecured loan is better if you can find one at a reasonable rate. It's also possible, if you're buying SSR from Disney, to use their financing and pay off so much faster that their higher rate doesn't sting you. That's what we're doing.

 

[tamu91]

I looked at several options when I purchased our points several weeks ago and the one that made most sense was home equity loan or home equity line of credit. The interest rate on these run anywhere from 5.5%-7.5%.
Low interest credit card might be an option for you but not all closing company will accept credit card payments.
One of your last option might be to borrow from your 401K. It's simple and you pay yourself the interest. There are some tax issues if you default on your loan and the money you borrow will no longer be part of your regular investment but it beats having to borrow @ high interest rate.

My advise is if you looking to buy DVC and you are not having any luck finding reasonable financing solution, buy direct from Disney. If you put 20% down, I believe the interest rate is less than 10%.

 

[The Prophet]

This is what I did --
Bought SSR direct from Disney, putting 10% down on my AMEX.
First payment was due June 1. Paid off the balance before June 1 with my AMEX.
Then I obtained a Discover Card -- 0% interest for life on transferred balances. I then wrote a check to pay off my AMEX.

This accomplished 2 things ....
1. Interest free 20K loan
2. 20K AMEX membership rewards points.

P.S. The only restriction is that I have to use the Discover Card twice per month starting in September.


The Prophet

 

[Mr Poohbrain]

I think a home equity loan, if it is available to you, would be the most cost effective way to go. Tax deductible interest and the rates are still very low.

 

[rchristiansen]

We actually had our home equity line of credit already established from when we purchased our home last year -- we did a 5/15/80 loan...so we had a second mortgage of $50K. Then because our home increased so much in value I had them "up" the line of credit to $90K so we have $40K in credit at our disposal for credit card elimination, home improvements, and of course DVC purchases .

The home equity line of credit is a 30 year loan where you pay only interest for the first 10 years. The first 10 years' interest rate is tied to the prime rate and ours is only like at the prime rate.

To give you an idea of the payment - if we maxed out the home equity line then the payment would only be like $370 for $90K. Then after 10 years it goes to a regular payment and we start paying down the principal - probably around $500-600 depending on the current interest rate. But we don't plan on being in this house for ten years.

So if you are thinking of doing a home equity line of credit get more than you think you need -- which is also good for emergencies, home repairs, etc. Because you only pay on the amount that you take out - so for us, we only have $70K that we have taken out so the payment is only about $270 --- not the max payment.

 

[wisbucky]

What we did was we orginally started with Tammac. We had no intentions of keeping Tammac for the entire loan due to the high interest rate. Then after one month we switched it to a credit card that offered 3.9% for the life of the loan. Now that you can not beat. We would of done a home equity loan but DH did not want Disney tied to our home. Guess I can not blame him there.

 

[NHLFAN]

Now I'm very interested...

Which DVC Resale companies take Credit cards?

plmk...thanks,
Doug

 

[crzy4dals]

wisbucky


You definately got my attention .... DH and I are trying to figure out how to purchase a resale and we have the home equity line... BUT I really do not want to tie that up....

So when you paid off Tammac did you use a balance transfer check from the credit card company??????

3.99 for life of loan is a great rate!!!! Mind me asking whick CC company?

 

[RuthnPaul]

Originally posted by crzy4dals
3.99 for life of loan is a great rate!!!! Mind me asking whick CC company?

We have a 2.99% rate for the life of the transfer balance through Capital One. I'd check with them or BankOne.

 

[tamu91]

Transfer only applies from credit card to another? And ususally, if you use a check issued by the credit card company, it's considered cash advance and they charge a fee. Don't they

 

[RuthnPaul]

Tamu91:

We've never paid a cash advance fee when transferring balances between cards.

Once we transfer balances from one card company to another, we typically start getting really good offers from the card company who just lost our business!

 

[tamu91]

I guess my question was how was the balance @ Tammac paid off? Did you write them a check issued by a credit company, then transferred the balance to another credit card with a low interest. If so, didn't the first CC company charge you a fee for using the CC check.
Or is there some other slick ways to get a free financing out there that I wasn't aware of