Monera Financial Questions

[0FF TO NEVERLAND]

Hi Everyone

Thinking about taking that jump and getting into a DVC contract =]

Has anyone used these guys before?

Basically my questions are the following:

1) Can you add more of a downpayment upfront to lower your monthly payments
2) Can I pay off the DVC sooner, as in 1 year from now, without penalty
3) Do you only pay off the interest that you occurred from sale to completely paying it off, if doing it early? Trying to get a sense of how much more I would have to pay if I decided a year from now, just to pay it off.
4) Is it true NOTHING gets reported on your credit? Do they even ask for SSN?
5) What happens if you don't pay, or fall on bad times, do they come after you for everything left, or do they sell the contract to someone else ( this won't happen but I'd still like to know )
6) Is the process easy and most important, is it secure?

Would just like to hear some experiences, since I am really considering this. Me and my significant other go to Disney every 2 years, and for the money we pay out of pocket for hotels, I figured around 100 points a year will basically give us everything we want ( 200 points for when we go ), and also, two trips, maybe 3, basically pays for itself

Thanks

 

[dvc lover 1970]

I have used them. You can prepay the loan without a penalty. Their rates are listed so they don't change from that, but the more you put down, the lower your payments. When I got my loan with them they had three options and the minimum loan amount was 4,000. They did not ask for my SS if I remember correctly, and I don't think they report it to the credit bureau probably because if you default, they will sell it at a profit. I assume if you don't pay they will foreclose on the loan. The loan is set up as an automatic bank draft, that is the only way they will do it. I get an automatic email the day before they draft the payment. The process is easy and secure. Not sure I would finance again. It is easier to finance with Disney. Maybe consider buying SSR or OKW direct and finance with Disney they also allow you to spread the payment out longer if you want and I think monera rates are higher than disney

 

[CastAStone]

Hi Everyone

Thinking about taking that jump and getting into a DVC contract =]

Has anyone used these guys before?

Basically my questions are the following:

1) Can you add more of a downpayment upfront to lower your monthly payments
2) Can I pay off the DVC sooner, as in 1 year from now, without penalty
3) Do you only pay off the interest that you occurred from sale to completely paying it off, if doing it early? Trying to get a sense of how much more I would have to pay if I decided a year from now, just to pay it off.
4) Is it true NOTHING gets reported on your credit? Do they even ask for SSN?
5) What happens if you don't pay, or fall on bad times, do they come after you for everything left, or do they sell the contract to someone else ( this won't happen but I'd still like to know )
6) Is the process easy and most important, is it secure?

Would just like to hear some experiences, since I am really considering this. Me and my significant other go to Disney every 2 years, and for the money we pay out of pocket for hotels, I figured around 100 points a year will basically give us everything we want ( 200 points for when we go ), and also, two trips, maybe 3, basically pays for itself

Thanks

If you are at risk of falling behind on payments it is critical that you sell the contract before you do fall behind. It will save you SO much trouble. Remember that both your lender AND Disney can foreclose for nonpayment (lender for loan payments and Disney for dues).

Very rarely should someone finance a DVC purchase, for a variety of reasons. Why not save up what would be your monthly payments and just purchase outright in a year or 2?

 

[sethschroeder]

two trips, maybe 3, basically pays for itself

So just a reminder even the years you don't travel you still have MFs. So make sure that's in the math.

Also borrow/banking can be restricted it's at 50% cap for borrowing right now.

In the camp of avoiding financing and if you do make sure it's something where you can easily pay it off more quickly.

 

[Lee Matthews]

Are all Loans from Monera able to be paid off sooner than the contract duration? And there's no penalty for doing that? Their contract confuses me. No, it's doesn't feature the ability to pay early with penalty or No there's no charge for paying early?



When spread over 10 years, paying a lot earlier does save a lot of $$$ in interest

 

[CastAStone]

Are all Loans from Monera able to be paid off sooner than the contract duration? And there's no penalty for doing that? Their contract confuses me. No, it's doesn't feature the ability to pay early with penalty or No there's no charge for paying early?

View attachment 559044

When spread over 10 years, paying a lot earlier does save a lot of $$$ in interest

You can pay a monera contract back as early as you want, without penalty, and should pay it back as early as you can.

You pay most of the interest you’ll ever pay in the first few years of the loan.

 

[Lee Matthews]

You can pay a monera contract back as early as you want, without penalty, and should pay it back as early as you can.

You pay most of the interest you’ll ever pay in the first few years of the loan.

Super. We put it over 10 years but have budgeted to have it fully paid off within 2 years

 

[princesscinderella]

Are all Loans from Monera able to be paid off sooner than the contract duration? And there's no penalty for doing that? Their contract confuses me. No, it's doesn't feature the ability to pay early with penalty or No there's no charge for paying early?

View attachment 559044

When spread over 10 years, paying a lot earlier does save a lot of $$$ in interest

What you posted from Monera means that there’s no prepayment penalty nor is there a balloon payment (which is at the end of a loan term a bigger lump sum than the regular payment).

 

[wvujeb]

If you are at risk of falling behind on payments it is critical that you sell the contract before you do fall behind. It will save you SO much trouble. Remember that both your lender AND Disney can foreclose for nonpayment (lender for loan payments and Disney for dues).

Very rarely should someone finance a DVC purchase, for a variety of reasons. Why not save up what would be your monthly payments and just purchase outright in a year or 2?

I think financing over a year or 2 isn't bad as long as you are committed and able to do so. When I was looking to purchase, I compared the interest I would pay over 2 years with the cost of purchasing in 2 years, accounting for the average rate that costs were increasing. It was only a couple of hundred dollars more in interest with the added benefit of 2 additional years of DVC. Of course, life events could happen in those 2 years where having the savings would be better than being stuck with a loan payment, but if things are stable. I don't think it's a bad idea. When you start stretching it to longer terms and higher interest rates, it becomes considerably more of a bad idea though.

 

[0FF TO NEVERLAND]

I ended up not doing it because I did the math and it didn't really save me any money. I would primarily use just the studio villas, and even going every 2 years, it still didn't pay off.

I think the idea of being a " DVC MEMBER " was what really made me wanna do it, but in the end I backed off of the idea and will just continue to rent points

 

[CastAStone]

I ended up not doing it because I did the math and it didn't really save me any money. I would primarily use just the studio villas, and even going every 2 years, it still didn't pay off.

I think the idea of being a " DVC MEMBER " was what really made me wanna do it, but in the end I backed off of the idea and will just continue to rent points

This is the correct answer for the vast majority of people! DVC rarely makes sense (that’s not to say it never makes sense - for some people it makes a lot of sense and is a great call). We always congratulate purchasers here so I’m going to say congratulations on not buying and making the right call for yourself!

 

[CastAStone]

I think financing over a year or 2 isn't bad as long as you are committed and able to do so. When I was looking to purchase, I compared the interest I would pay over 2 years with the cost of purchasing in 2 years, accounting for the average rate that costs were increasing. It was only a couple of hundred dollars more in interest with the added benefit of 2 additional years of DVC. Of course, life events could happen in those 2 years where having the savings would be better than being stuck with a loan payment, but if things are stable. I don't think it's a bad idea. When you start stretching it to longer terms and higher interest rates, it becomes considerably more of a bad idea though.

Yes, the longer you hold it the worse it is. If you can pay it off in 2 years though there’s generally better ways to finance it than via a DVC lender, although they are more cumbersome.

 

[Fowler1041]

Can you use Monera to purchase direct points? I want to purchase DLT right when it comes up, but I’m also going to sell a couple contracts and then pay it off immediately. I just DO NOT want to lose out on DLT while waiting for my contracts to sell and I don’t want to sell them yet.

 

[disneyforsix]

Can you use Monera to purchase direct points? I want to purchase DLT right when it comes up, but I’m also going to sell a couple contracts and then pay it off immediately. I just DO NOT want to lose out on DLT while waiting for my contracts to sell and I don’t want to sell them yet.

No - I am pretty sure they strictly deal with resale purchases.