New Member and Loan Question

[buckeyejennifer]

We are new members of DVC with an ownership at AKL. We literally just joined and sent our paperwork back last week. I decided to finance it with the intent of paying it off over the next 6 months. We were approved at the 10.75% rate and signed all of our paperwork saying the same thing. The paperwork also stated that our montly minimum payment (on 170 points) would be $198.86, which includes principal and interest. The mortgage agreement has all of this info in black and white and also states that the interest rate can rise to a max of 11.75% (I assumed for not paying on time or something).
Anyway, I checked the DVC member website today and saw that my loan information is recorded on the site. Well guess what? It lists my interest rate at 11.75%. My first payment isn't even due for 2 months and they have already had the nerve to raise my rate? Is this for real?????

Do you think this is an error, or could they really be this slimey???

 

[ToddyLu]

That sounds like a mistake. Our problem was that when we started getting our mothly withdrawals it was for more than we thought. Upon closer inspection they broke our payments down into 5 monthly payments for our first year. We bought in June and they pro rated the monthly notes starting in August. So we were paying more than we thought until I added things up. They just don't tell you that and it had me concerned for a couple of days. We also have the 10.75% rate and I have never heard of an 11-% rate, only 14-% for the folks that qualify for the standard rate. I would call MS tomorrow and let them know. I think you wil have to talk to someone in QA, not MS reservations. It is scary signing for a large purchase like that and re-reading it a million times, only to find an error.

Take care neighbor, we love our AKV home. Welcome Home Friends-Jambo!!

 

[edk35]

I think your interest rate is higher if you are NOT doing direct debit from your acct. I think I remember them telling us that back in 2007.

 

[lovedvc]

It's the lower rate for Electronic Withdrawal and the higher rate if you don't use Electronic Withdrawal.

 

[buckeyejennifer]

I was sitting here in a panic, so I called our guide. He looked at the information and said it is a mistake. We did sign up for direct deposit (and I sent a voided check) with the paperwork. He apologized profusely, said he would take care of it, and assured me that it is a mistake. I feel 1000 times better.

Thank you all for the information and reassurances. He said that we just closed today, so I guess we are official DVCers!! Yeah!!

I already have a couple of vacations booked!

Jennifer

 

[jstarcze]

Glad everything was taken care of. Welcome Home and Congratulations from Mickey, Goofy, and Me!

 

[Sandisw]

I was sitting here in a panic, so I called our guide. He looked at the information and said it is a mistake. We did sign up for direct deposit (and I sent a voided check) with the paperwork. He apologized profusely, said he would take care of it, and assured me that it is a mistake. I feel 1000 times better.

Thank you all for the information and reassurances. He said that we just closed today, so I guess we are official DVCers!! Yeah!!

I already have a couple of vacations booked!

Jennifer

That is great, congratulations, and welcome home!!! And, I think that as long as you continue with direct debit, your rate will not go up. That is simply letting you know that it can if you choose to change your method of payment.

 

[Crystal_27]

I was sitting here in a panic, so I called our guide. He looked at the information and said it is a mistake. We did sign up for direct deposit (and I sent a voided check) with the paperwork. He apologized profusely, said he would take care of it, and assured me that it is a mistake. I feel 1000 times better.

Good deal - -glad it worked out. Welcome home!

 

[robertdangelo]

We added on at BLT last year... the first payment was a bit higher than what was quoted. I called my guide, he said that was normal and the rate would go down to what we expected starting with the second payment.

Welcome home!

 

[stopher1]

Congratulations and Welcome Home!

 

[bumbershoot]

We added on at BLT last year... the first payment was a bit higher than what was quoted. I called my guide, he said that was normal and the rate would go down to what we expected starting with the second payment.

Welcome home!

Yep; that first payment included interest from the moment you closed to the first payment being due, which was longer than one month. We had the same thing happen!

 

[buckeyejennifer]

DVC called this morning and corrected the error on their end. The DVC member website now lists the correct interest rate and monthly payment, so I think it is all fixed. Thanks!