Interest rate that Disney offers??

[No1HawkFan]

Any recent buyers know what the current interest rate that Disney will offer?

Thanks in advance.

 

[tjkraz]

9.75% for 10 years with 20% down and monthly payments via direct debit from checking / savings account.

 

[winjos]

We just added points and the rate is as follows:

9.75% when putting down 20% or more
10.75 when putting down less than 20%

Hope this helps!

 

[Greysword]

This is kind of high for property loans, but you get a few benefits with it. Disney does their own financing, so the loan has a very very very low possibility fo beign sold. Because they finance it with little risk to themselves (they will just get the points back if I defaulted), they are pretty lenient about payments and such. One person posted they received a deferment due to financial difficulties. Another benefit is that Disney does not appear to report to the major credit agencies (except for the initial credit pull). Thus, a DVC loan will not count against your debt to income ratio if you are looking to get a home loan, car loan, etc.

 

[tjkraz]

A few other things for Chris' list:

* There is no pre-payment penalty. If memory serves, the interest rate is the same for any term over 1 year. So, you might as well just schedule it for the full 10 years (for maximum flexibility) and make additional payments as you are able.

* The note is considered secured debt, meaning that most people can deduct the interest under the second home provisions of the tax code. Signature loans are typically not eligible for such a deduction, nor would any interest paid if a credit card is used.

* There is an Internet-based lender that will finance timeshares. I'm drawing a blank on the name at the moment. I've heard that the rate is similar to Disney's, but don't really know anything else about them.