Looking 4 creative financing ideas for DVC

[disneyatheart]

We are currently financing DVC through Disney (10.95%). We sold our house and renting a townhouse until the construction on our new house is completed. Obviously, we would like to refinance DVC with a lower interest rate, but unsure what options might be available to us.

I thought somone on this board might have some ideas for "creative financing".

Any information would be great.

Thanks so much!

 

[rsschneck]

Our Credit Union that we use for all our loans has something they call a personal loan. I beleive their rate for that type a loan was 6% or 7%. Not real sure how you qualify for that type of loan.

You could also do the Credit Card Juggling Act. I wouldn't recommend this because you are building a house and your credit will be looked at closely during closing of your home loan.

Maybe others might have some more ideas for you. Good luck!

 

[disneyatheart]

We don't like to carry balances on our credit cards and don't wish to go that route.

 

[chrissyk]

If you have in excess of 20% of your new downpayment (from your recent home sale), you could use that to pay down or pay off the DVC If not, you can probably do an equity loan at a lower rate once you close on your new construction.

 

[DebbieB]

I borrowed some from my 401K. I think the interest in 1999 was 9%, which I paid back to my account. The downside to this is the money does not get investment income while it is out of your account.

 

[manning]

I borrowed some from my 401K.

NO, no,no. Bad idea.

 

[DebbieB]

Originally posted by manning
NO, no,no. Bad idea.

I know, I know but it was an easy way to get the money! I paid it back as fast as I could, within 2 years.

 

[tiberius]

Not exactly alternative financing, but you could take a part-time job delivering pizzas or newspapers and send that money in to pay off the DVC purchase way early.

 

[bubbasmom99]

I think your options are limited if you are looking for credit options that don't impact your credit rating (i.e. credit cards as mentioned above)... though if you find a credit card with a zero interest rate, it might be worth it if it's a good deal. Depends on how much you are talking about financing and how long you need to borrow it for. The 10.95% offered by DVC is high, no doubt about it, but if you are planning to use a home equity line once your house is finished, you might just want to pay the DVC rate until you can transfer the balance to a home equity line of credit. For the short term, the 10.95% won't have as much impact on your long term financing costs.

 

[crisi]

The cheapest "loan" option may be the family loan option. On occation a relative will agree to loan you money at a low (or even no) interst rate).

Check out the options for a personal loan. Sometimes you can "sell" your car back to yourself and get a better rate on a car loan if you own you car outright than you have on DVC - as the car loan is secure. My brother in law did this once.

The "best" option is to retire the debt rather than refinance it. Which will either mean using some savings, trimming your budget to free up cash or increasing your income. e-Baying used stuff or getting a part time job are possible options - as is a spending moritorium until the debt is retired. One possible option (blasphemy though it is here) would be to rent out your points for this year - you get income, plus you trim from your budget things like park tickets, transportation and souvieniers.

 

[stacy6552]

Given your situation, Id pay cash for DVC with the cash from your old house and finance more with your primary mortgage. You'll get the best interest rate, plus you wont have any additional credit on your report prior to closing your new mortgage.

 

[manning]

The cheapest "loan" option may be the family loan option. On occation a relative will agree to loan you money at a low (or even no) interst rate).

Just as information. Keep it quiet . Believe it or not if the IRS got wind of it they can impose a going interest rate and tax the lender for it. It's dumb, but the law. Likely of it happening is problably slim to none.

 

[o.t.4disney]

Work some o.t. or you can always count on your inlaws. lol