Low interest rate loans for dvc/timeshare?

[dcibrando]

Does anyone know of any good low interest rates (preferably 10 yrs) for loans given to DVC/timeshares (other than the normal 10.95% etc.)


also...just curious.. does anyone know if travel agents actually receive discounts on purchasing dvc? I have a friend of mine who is a travel agent and when I was talking to him about this...he posed the question in case his family was interested in one day joining and I wasn't sure.

 

[Maistre Gracey]

Not a loan per se, but I currently have one contract on a 2.99% lifetime credit card rate.

Remember, the interest is probably tax deductible on a DVC mortgage, so the effective rate is likey around 8%.

MG

 

[dcibrando]

but on credit cards... if you have like a $10,000 balance... you still have to pay a minimum of like 3% each month don't you?


and is the tax deduction only when going through Disney or can you get this purchasing resale?

 

[Maistre Gracey]

but on credit cards... if you have like a $10,000 balance... you still have to pay a minimum of like 3% each month don't you?


and is the tax deduction only when going through Disney or can you get this purchasing resale?

I applied for a new card, and use it exclusively for that DVC contract. I haven't even peeled the sticker off the card. Once that's paid, I'll likely close the account.

I'm not an accoutant, but I believe the loan has to be secured by a mortgage in order to get a tax deduction. It's likely financing through DVC is the only way to accomplish that.

MG

 

[Maistre Gracey]

but on credit cards... if you have like a $10,000 balance... you still have to pay a minimum of like 3% each month don't you?

I think I mis-read your post.
My particular card is 2% payback. They do vary between 1% and 3% as best I can tell.

MG

 

[Caskbill]

I'm sure there's no special deal for travel agents. Or for Real Estate agents, or any other outside group. The only known discount if for Disney CM's who purchase.

Of course there are incentive discounts, which are available to everyone.

The interest is ONLY deductible if the loan is secured by real estate. And even then there can be other conditions that are required before it is deductible.

If you're a home owner, then a Home Equity loan would be a good choice.

If you do use a credit card, such as a special low interest rate like MG is using, then absolutely do not use the card for any other monthly purchases. The payments you make would apply to the lower interest rate balances first, and none of the payment would apply to the higher, regular charges balances you made during the month. They then would acrue interest at your card's highest rate, anywhere from 17% to 22% or so.

We did similar to MG and used a special 3.99% rate on our CC to buy a new car. ($15,000 after discounts, trade-in, etc.) Over the life of the loan it's going to be $700 less interest than the best auto loan rate, or home equity loan rate, we could find. And, I have the monthly payments automatically set up to draft directly from our bank account. (Fine print in the loan, if any payment is late, the entire loan jumps to the regular, high, interest rate . So being late is NOT an option... )

 

[dcibrando]

by doing that with a low interest credit card though... aren't you obligated to at least make a payment of like 3% per month.... so spreading it out over 10 yrs on a credit card would be hard or impossible really?

for instace.. $15,000 on CC - first month payment would be like $450?

 

[CarolAnnC]

Since credit cards are revolving interest calculations, paying the minimum due will not even get the card paid off in 10 years.

Buying resale as stated above, a home equity loan is your wisest choice. Buying through Disney, of course their financing is the way to go.

Good luck.

 

[RobDoc]

...
also...just curious.. does anyone know if travel agents actually receive discounts on purchasing dvc? I have a friend of mine who is a travel agent and when I was talking to him about this...he posed the question in case his family was interested in one day joining and I wasn't sure.

No, there is no DVC discount for travel agents. There is a discount for Disney CMs, but no other groups get any consideration.

 

[CarolA]

If you do use a credit card, such as a special low interest rate like MG is using, then absolutely do not use the card for any other monthly purchases. The payments you make would apply to the lower interest rate balances first, and none of the payment would apply to the higher, regular charges balances you made during the month. They then would acrue interest at your card's highest rate, anywhere from 17% to 22% or so.

We did similar to MG and used a special 3.99% rate on our CC to buy a new car. ($15,000 after discounts, trade-in, etc.) Over the life of the loan it's going to be $700 less interest than the best auto loan rate, or home equity loan rate, we could find. And, I have the monthly payments automatically set up to draft directly from our bank account. (Fine print in the loan, if any payment is late, the entire loan jumps to the regular, high, interest rate . So being late is NOT an option... )

Just a thought. If you pay off your "new charges" every month you may be fine.

I put my VAK on my Disney Visa at 0% for six months. Every month I pay ALL new charges and a percentage of the AK charge (1/6) I have not been charged any interest.