Getting serious now....

[sajetto]

Hi all! My fiance and I just had to cancel our ressie that we rented from a DVC member due to family issues. However, since we cancelled my DF keeps bringing up buying into DVC ourselves so that we can make our own reservations whenever we are sure about when we can go. We have more than enough money in our accounts to pay off the entire thing, but we get an extremely high interest rate and would lose a lot of money buy removing that much at one time.

We would like to buy 250 points at SSR and get financing. Are we better off going resale or direct through Disney? What is Disney's interest rate? What is the interest rate of the company TTS refers you to? How much is the annual increase in dues? Thanks in advance for the help!

 

[sajetto]

Okay, here's an even better question for those that are calculator savvy.

This is what we came up with and I think there is something wrong with our calculation: $98pp X 250 = 24,500 - $1200 incentive= 23,300
So 23,300 minus down payment $3,300
20,000 @ 9.5% for 10yrs
almost $183.00 per month not counting dues

Is that right? I feel like that is way lower than it is supposed to be

 

[Pa@okw95]

Hi all! My fiance and I just had to cancel our ressie that we rented from a DVC member due to family issues. However, since we cancelled my DF keeps bringing up buying into DVC ourselves so that we can make our own reservations whenever we are sure about when we can go. We have more than enough money in our accounts to pay off the entire thing, but we get an extremely high interest rate and would lose a lot of money buy removing that much at one time.

We would like to buy 250 points at SSR and get financing. Are we better off going resale or direct through Disney? What is Disney's interest rate? What is the interest rate of the company TTS refers you to? How much is the annual increase in dues? Thanks in advance for the help!

Whatever you are getting in interest from your savings it will not be as high as the interest you would pay on the loan. Wait to remove your money when you will not get a penality and pay cash for DVC. Our annual dues at OKW went up 10 percent this year. I expect our dues at OKW will keep going up faster because everyone and his mother is using OKW thus a strong need for repairs. I doubt you will see that kind of increase at SSR. Remember you are really just leasing points when you go with DVC so get the lowest costing point you can get. All points are equal regardless of where they are from unless you want to say between 11 months and 7 months out they are slightly different because of there use ability, but after 7 there is no difference.

 

[sajetto]

Whatever you are getting in interest from your savings it will not be as high as the interest you would pay on the loan.

It is not a savings account it is a trade account for certain stockholders at 11%. It really is a situation where I should not take anything out b/c it earns me over $400 every 2 weeks.

 

[Pa@okw95]

It is not a savings account it is a trade account for certain stockholders at 11%. It really is a situation where I should not take anything out b/c it earns me over $400 every 2 weeks.

Sorry, you are correct, leave your money in there-great interst!!

 

[sajetto]

Sorry, you are correct, leave your money in there-great interst!!

No need to be sorry, most would say no way, Don't Finance a luxury purchase! This is just a unique situation.

 

[Doctor P]

$183.00 per month for 10 years sounds low. We just borrowed $10,000 for 10 years at 8% (non-DVC) and our payment is $121 per month. Here is a quick and dirty loan calculation that is generally pretty accurate: $20,000 for 10 years at 9.5%. The quick and dirty way to figure it when you don't have a loan calculator is like this: avg. amount outstanding over the life of the loan will be 50% of original amount: $10,000. $10,000 x .095 is $950 per year. $950/12 is monthly average interest payment over life of loan--$79 approximately per month. $20000/120 months equals the average principal payment of $166.67. So, I would say your payment will be more like $246 per month before maintenance fees are considered.

 

[sajetto]

Thanks. I figured someone had to know how to calculate it the right way.

 

[mickeyman]

you will get more than $1200 off. You get $8 off per point. you would get $2000 off. $1200 is if you buy the minimum 150 points. also your monthly payment should be more. I financed $14600 and i am paying $191 per month.

 

[LisaS]

If you do a web search for "loan calculator" you will find lots of them on the web. Here are the results I got:

Given a purchase amount of $20,000.00.
An interest rate of 9.500%,
A term of 10 years.
Your monthly payments will be $258.80.

 

[sajetto]

If you do a web search for "loan calculator" you will find lots of them on the web. Here are the results I got:

Given a purchase amount of $20,000.00.
An interest rate of 9.500%,
A term of 10 years.
Your monthly payments will be $258.80.

Thanks a lot Lisa! That's exactly what I wanted to know. I guess I should have looked a loan calculator up

 

[LisaS]

Thanks a lot Lisa! That's exactly what I wanted to know. I guess I should have looked a loan calculator up

Happy to help. I've refinanced my house a couple of times as interest rates came down so that's how I knew those loan calculators are out there. They've come in very handy!

 

[cobbler]

www.bankrate.com is a great place to put in for loan caluclators. Even lets you see how much interest you will pay and when your payoff date will be and you can play with it and see how it changes if you add X per month to your payment.

 

[greenban]

Hi all! My fiance and I just had to cancel our ressie that we rented from a DVC member due to family issues. However, since we cancelled my DF keeps bringing up buying into DVC ourselves so that we can make our own reservations whenever we are sure about when we can go. We have more than enough money in our accounts to pay off the entire thing, but we get an extremely high interest rate and would lose a lot of money buy removing that much at one time.

We would like to buy 250 points at SSR and get financing. Are we better off going resale or direct through Disney? What is Disney's interest rate? What is the interest rate of the company TTS refers you to? How much is the annual increase in dues? Thanks in advance for the help!

I haven't seen this answered yet.

I believe the 'list' rate for SSR now until March 1st is $98 pp, You can get $8.00 off pp or $1,200 in developer points/free vacation.

Lets assume its $90.00 per point, and you buy before March 1.

No closing costs, east but very high financing, no wait. You may or may not get prior year's points depending on the UY available. (In the past I had always gotten prior use year's points, this year during F&F($83.30pp) I would not have gotten the past year's points for my December UY (They were out of DEC UY points by the time I called, per my guide)

TTS (I should get a job there, no?)
Jason is great, BTW he's on vacation this week:

Lots of SSR contracts, most with banked points (at least 1 year available) and listing between $81-$85 pp.

On the ROFR thread: http://www.disboards.com/showthread.php?t=720134

SSR has been passing at $80.00 pp.

Offer $80.00 per point, closing is less than $4.00 pp for 100+ point contract.

$84.00 pp for the time of ROFR, with at least 1 full year points, and pretty much your choice of use years...... Versus $90.00.

I would save the $6.00 pp, $900.00 on a 150 point contract, and if you get a triple (Last year's points banked, this years points now available, and next year's comming in, you can rent the banked points at say $11.00pp x 150 points and bring your final net purchase cost down to $73.00 per point, even against a new SSR with last year's points available!

To me it is a no brainer, but I'm sure I missed something in my calculations....

JMHO, YMMV!

Good luck either way!

-Tony

 

[LisaS]

You may or may not get prior year's points depending on the UY available.

In several posts, people have posted that they got prior year points when buying directly from Disney. Initially I assumed that what they really meant was current year points but called them "prior year" points because they were thinking of them as having been granted back at the start of their use year in the prior calendar year.

But greenban, you've purchased enough points to know the difference betweeen prior year and current year points so now I need to ask if you really got prior year + current year points when buying directly from Disney. That would be great! Prior year points would be banked points so I assume you would only have until the end of the current use year to use them or lose them, is that what happened in your case?