Just came back from WDW and took the DVC tour....

[cgcruz]

WOW! We talked to the DVC rep at Saratoga Springs and took a walkthrough of the rooms. They were so beautiful! the 1 bedroom suite was amazing with a jaccuzi and very spacious. I was seriously considering buying right on the spot but the fiance convinced me that I shouldnt make a decision like that on the spot. I was going to do the 10 year financing with a $1200 credit off the down payment, but I remember reading here that buying membership through a 10 year finance is not worth it.

Also , since we talked to a rep at a DVC booth in Epcot world showcase, we got to be picked up behind world showcase and had a cool behind the scenes tour of epcot. It was pretty cool. We got to see the globe for the illuminations show.


Any suggestions as to what to do?

 

[Anewman]

but I remember reading here that buying membership through a 10 year finance is not worth it.

Not the first choice, but unless you have an extra 14k around the house...

You can also take out home equity loan and pay off the disney loan when ever, there is no early pay penalty.

I would(did) take the Disney loan over what most of the resale financing options.

 

[tjkraz]

If you can swing a home equity loan, that will get you a lower interest rate than DVCs, and the interest will most likely be tax-deductible.

If you must buy through DVC, agree to the 10-year note and make every effort to pay it off early. While the long-term payments and interest will not eliminate the savings of DVC (after all, the contract is for almost 50 total years), it does take you much longer to reach a break-even point on the purchase with the additional interest paid. DVC loans are also tax-deductible for most people since the note is secured by the property.

You could investigate a resale contract and possibly save some money up-front (depends on resort and actual contract). But you'll have to finance the resale yourself. Unless you can use a Home Equity line to finance, you'll probably end up with a personal loan that has a fairly high interest rate and non-deductible interest.

Hope that helps.

 

[rocketriter]

The 10 year Disney financing has its good points. You can pay it off faster if you like, saving tons of money. It's an unsecured loan (unlike a home equity loan which, if you default, allows creditors to try to take your house). And Disney will reduce your interest rate if you agree to automatic withdrawal from a bank or savings account (which does not get in the way of your paying off faster).