financing

[troynkasey]

For those of you who are part of the DVC, what types of financing are available. I'm assuming they don't expect you to fund the whole amount, right?

We've been to WDW 6 of the last 8 years, so this is probably something we should take advantage of...

 

[stopher1]

If you buy direct from Disney you can finance it yourself (home equity line, your bank, etc), or directly with them. Disney charges 10.75% for "preferred" credit, or 14.75% (or maybe more), for "standard" credit. They do it themselves, and will run your credit, but it doesn't show up on your report. They expect a 10% down, payable immediately upon telling your guide you want to join. They have 10 or 5 year terms, but I believe the 5 year term requires a larger down. Automatic monthly payments are required, at least that's what my guide told us. There are no pre-payment penalties, so you can pre-pay all you want to reduce the overall interest expense.

 

[RobDoc]

There has usually been a lower % rate for a 1 year loan with a larger deposit.

DVC has also offered (in the past) a lower rate with a direct debit from a checking account (in the past this has been 9.75%).

 

[troynkasey]

Thanks guys! We're heading down in June, so maybe we'll talk to someone about doing it.

 

[hthrbells]

How much is 10% down? We just started looking into this and I was just curious how much we would have to put down. Thanks

 

[mygirl]

depends on the costs of your membership - that is how many points you purchase will determine your overall cost...

 

[rstackjd]

How much is 10% down? We just started looking into this and I was just curious how much we would have to put down. Thanks

That depends on the number of points and purchase price. At a minimum purchase of 160 points and a price of $104 per point the total is $16640 so 10% would be $1640, plus the closing costs of I think $320 per contract - so lets say minimum up front is about $2K - more if you buy more than the minimum points.

 

[AKV707]

How much is 10% down? We just started looking into this and I was just curious how much we would have to put down. Thanks

It depends on where you buy. In other words. which home resort you chooses. At SSR and AKV, I believe that the price per point is currently $104. The minimum buy in is 160 points. I think that the current incentive is still $10 per point discount on SSR and $8 on AKV.

So assuming you buy 160 AKV points, the total would be $15,630.00 which would make your down payment $1563.00.

 

[Nftysqrt]

We just recently bought into AKV about two weeks ago. We financed through Disney and we are also extending our Down Payment. As of right now we only put 500 down. But that's because we weren't 100% sure if DVC was right for us but didn't want to miss on the incentives. When we go to DLR this weekend we will pay off the Down Payment.

It seems to me that Disney will work with you if you can't put 10% down at once.

 

[Nikisha421]

they will even work with you so much that if your credit sucks after they take your 10% percent they will call and tell you that they need 20% more to make it happen. this will probably be after you made your first reservation and before your closing date. this all equals to the fact that you havent closed yet so they have the right to ask for a larger deposit, but you have made your travel plans which most liekly includes airline tickets that are nonrefundable. so you will have to come up with the additional 20% or loss the money you paid for airline tickets. there's a piece of reality for yah

 

[Wedgeh]

Just out of interest, are those typical interest rates for finance in the USA? We took out a loan over here in England at 6.9% for our DVC contract, I would never have considered it if the only finance I could have gotten was at such a steep rate.

 

[TMB1203]

We put 10% down in 2001.
We financed at 10.95, I think. There was a 1% discount for using EFT for payments versus mailing in a payment each month.
Occasionally, I pay extra online to help pay down the balance, and pay it off sooner than the 10 year term.

Once its paid off, I would like to add on.

 

[luvindisneyworld]

They charge you 10% of the 104.00 PP.

It depends on where you buy. In other words. which home resort you chooses. At SSR and AKV, I believe that the price per point is currently $104. The minimum buy in is 160 points. I think that the current incentive is still $10 per point discount on SSR and $8 on AKV.

So assuming you buy 160 AKV points, the total would be $15,630.00 which would make your down payment $1563.00.

 

[Y-ASK]

Disclaimer: What I am about to recommend is not for everyone and you should be comfortable that you are not going to lose your job before the loan is paid off.

I would suggest you borrow the money from yourself if you have a well supplied 401K account. You'll be paying yourself back plus interest thus increasing your 401K by a signficant amount.

Y-ASK

 

[WendyinNC]

Disclaimer: What I am about to recommend is not for everyone and you should be comfortable that you are not going to lose your job before the loan is paid off.

I would suggest you borrow the money from yourself if you have a well supplied 401K account. You'll be paying yourself back plus interest thus increasing your 401K by a signficant amount.

Y-ASK

You will probably have many people tell you this is a bad idea. However, this is exactly what I did and with the stock market doing poorly my account will probably be in better shape because I pulled some money out and am paying myself back with interest.

 

[Y-ASK]

You will probably have many people tell you this is a bad idea. However, this is exactly what I did and with the stock market doing poorly my account will probably be in better shape because I pulled some money out and am paying myself back with interest.

Yeah, I've suggested this a couple of times on this board and each time another member has poo-pooed the idea. For many of us that money is locked into that 401K account. We don't have the choices that someone would have if the money were free to be invested some where else. I kept hearing how people were getting 8-12% and I say BS. I had a limited number of investment funds I could invest in and I was comfortable with my job, etc. so I invested in myself. I thought it was a pretty good investment after I checked out my own finiancal situation . I'm collecting 8% on a loan to myself that's almost paid off. Like Wendy said, that loan has probably been my best earning investment in the last couple of years.

When I purchased into AKV recently I wanted to do a test. I did a mock investment into Disney stock at the same time for the same amount. My mock portfolio is now worth -$5107.22 or a 10.22% loss after only one year. That's right, that not a gain, that's a loss. The stock is worth $5K less than it was a year ago. Yet my 401K kept earning 8% on that loan...

Everybody's situation is different so you need to work the numbers and know your own situation. If you don't understand or know how then you probably shouldn't take out a 401K loan...

Y-ASK

 

[delmar411]

That depends on the number of points and purchase price. At a minimum purchase of 160 points and a price of $104 per point the total is $16640 so 10% would be $1640, plus the closing costs of I think $320 per contract - so lets say minimum up front is about $2K - more if you buy more than the minimum points.

There are no closing costs when buying direct from Disney. It's 10% down that's it. You have to pay the $500 up front before then do anything else and that is part of the 10% down.

HTH!

If you finance esp at the 14.25% rate you'll want to pay that down as fast as possible. The interest saved on paying it off early is huge.

 

[utahkennedys]

You can always start into DVC by buying a small resale contract for cash. We don't finance any vacations, so we won't finance DVC either. Then, you can add on over time as you can afford it and avoid those crazy interest rates, tapping home equity or 401k. I know we are frugal and maybe the minority, but to us vacations are "extras" (that we manage to squeeze in 3-4 times a year!) so everything has to be paid/invested first, not vice versa. We bought our 25 point OKW contract for around $2k and have never regretted it!

 

[rstackjd]

There are no closing costs when buying direct from Disney. It's 10% down that's it. You have to pay the $500 up front before then do anything else and that is part of the 10% down.

HTH!

If you finance esp at the 14.25% rate you'll want to pay that down as fast as possible. The interest saved on paying it off early is huge.

Well then it appears we got hosed - when we bought in January we paid 10% down plus closing costs which I believe was $320 - directly through DVC.

If it's true that there are no closing costs can someone suggest who to discuss this with at DVC?

 

[delmar411]

Well then it appears we got hosed - when we bought in January we paid 10% down plus closing costs which I believe was $320 - directly through DVC.

If it's true that there are no closing costs can someone suggest who to discuss this with at DVC?

I'd call your guide. Do you have your paperwork handy? The mortgage closing statement should show you where your funds went to. Mine show where Disney is paying the closing costs.

ok, dug mine out...you'll look on the page that says Settlement statement. There will be a seller's column and and borrower's column. Our settlement costs are listed there in the seller's column.