Financing

[miste]

I might be a little naive here on this, but How do most of you finance these DVC Resorts? I realize that the bottom price is right at $12,600, do you finance it like a car or do you all buy them outright? I guess what I don't understand is that, let's say that I want to buy 200 points? This would mean I would be buying a share worth $16,800, right? (at 84.00/point) So what would I be paying on a monthly basis? someone PLEASE help me understand this. Thank you!!

 

[justcruisin]

A home equity loan is a great way to go. We couldn't do that for our initial purchase, but will do that when our add-on comes through

 

[5infam]

You can finance through Disney with a small percentage down (I think the minimum is 10%) for as long as a 10 year term. I do not have their grid anymore for payments, but I know the current rate is 9.75% with auto debit (direct payments from your checking account). Keep in mind though that you still have to pay your anual dues (around $4.00 per point) either once a year in January, or you could make monthly payments throughout the year.

 

[anniet]

I'm financing 200 points right now- 2 different contracts- the original for 150 points and just added another for 50 points. Each mortgage is for 10 years, monthly payments for both equal 167.66, but as I get tax returns, bonuses and additional savings, I send them money towards the principal. I expect to have it paid off in 3 years. I like the mangeable monthly payment though.

You can go to bankrate.com and there are loan calculators where you can plug in amounts borrowed, percentage rates, term of loan and they will give you the monthly payment amounts.

 

[findingnemofan]

We financed through DVC--and it is a very manageable monthly payment--plus you get the tax deduction for the property tax portion of your monthly payment!!!
We did a little financing shopping---and found that Disney had a two point lower interest rate than the timeshare financing company we looked at.

I agree that using the equity in your home is an excellent way to go---if you can....

 

[DVC-Don]

Our first contract (VWL) was financed through Disney after 20% down. Then we paid that off with our Southwest Visa and got a free flight from Southwest with the points. The Visa bill we paid off with our HELoC (Home Equity Line of Credit). The interest on that we write off on our tax's.

Our second contract (OKW) we just paid for with the HELoC.

 

[miste]

Thank you for all your help!! I'll look into financing through Disney as well as the Home Equity Line of Credit. You all have been a great help.