non-Disney Financing ofDVC purchase

[MrsG]

Friends are considering purchasing but are turned off by Disney's loan rates. Is there another way to finance? Can you get a personal loan through your bank? Any other ideas?

Thanks

 

[RobDoc]

Many have used a Home Equity loan for their DVC purchase - which may qualify as a mortgage so interest can still be deducted. Some personal loans would be unsecured and the interest might not be deductible, so if that is important it would be wise to review that in advance with their tax advisor.

At this time, some banks may be reluctant to provide a loan for a timeshare purchase so be prepared for that when checking around.

 

[magicaldisney]

If they are looking at Disney's loans then they were looking at buying direct through Disney. If they are now looking at financing on their own, I would suggest looking at buying resale. They would save a ton of money.

 

[jlewisinsyr]

Timeshares are for all intents and purposes are unsecured debt. Sure, there is a physical property attached, but it's valuation and lack of liquidity make it a real tough debt to settle if a person needs to file bankruptcy, thus it's looked at by many financial institutions as unsecured.

There are varying opinions on financing and then financing against your home. Personally, I don't have an issue with financing, as the outlay of the finance charges are small compared to the total outlay of owning (it really doesn't move the dial that much in terms of your savings over hotel rates). That said, I think placing a debt on your home for a timeshare is a little more risky as it then becomes linked to your home, which means if you default, you don't risk your timeshare ownership, you risk your home.

 

[GoofItUp]

We financed through a bank with a personal loan using my car as security. We paid it off within 18-24 months and the interest rate wasn't too bad. Maybe 6% if I'm remembering correctly. However, this was a local bank that we had done business with before and we have excellent credit and practically no other debt at the time. Not sure it would work for everyone, but it worked well for us!

 

[kyle051777]

We just closed about a month ago and what we did was used one of our credit cards. We had a 0% interest with a 3% balance transfer for 15 months. We just divided the total amount by 15 months and it will be paid off. The key here is to either get qualified or have a credit card with a 0% offer.

 

[magicaldisney]

We just closed about a month ago and what we did was used one of our credit cards. We had a 0% interest with a 3% balance transfer for 15 months. We just divided the total amount by 15 months and it will be paid off. The key here is to either get qualified or have a credit card with a 0% offer.

Did you do this with resale or direct?

 

[kyle051777]

Resale through fidelity.

 

[ssawka]

One thing to keep in mind is that a loan through disney, since it is actually considered a mortgage, may be tax deductible. It was for us, so the effective loan rate was really like 8%.

 

[scout68]

We financed through Disney after two months we paid it off with our Dis Visa collected the points then paid off the credit card with a small home equity loan that has been at 3.8% since the day we opened it. Should be paid off at the end of the year.

 

[jlewisinsyr]

One thing to keep in mind is that a loan through disney, since it is actually considered a mortgage, may be tax deductible. It was for us, so the effective loan rate was really like 8%.

If a person doesn't have any other loan interest though, the effect is much less.

 

[marynvince]

We just closed about a month ago and what we did was used one of our credit cards. We had a 0% interest with a 3% balance transfer for 15 months. We just divided the total amount by 15 months and it will be paid off. The key here is to either get qualified or have a credit card with a 0% offer.

CC issuers are required to charge a percent of the amount being transfered, affectively eliminating the 0%