? on Financing Options

[Forever a Princess]

Hi All! We are seriously considering joining DVC by resale.

What financing option have you used for your DVC rental? Please note that I am not asking for specifics on how much your loan was for-I do not want to pry. Just need some ideas on where to go for financing for DVC.

We do have a wad of cash for DVC (grew it on our money tree of course) but we may need to do a loan for part of DVC.

Do the resale people have lenders that they work with? any good web lenders? or should I check with my own bank?

Thanks in advance for the info.

 

[RobDoc]

Resales generally have very limited finance options for timeshares(and at a very high rate). You'd be better to check with your local bank, use a home-equity loan or a 2nd mortgage.

Enjoy!

 

[stacy6552]

We bought new fron Disney, but still financed through our own bank. With interest rates so low, we tied it into the house with something else and it literally costs us $30/mos.

 

[kcashner]

If your own bank isn't a better deal than the seller financing available, you need a new bank!

 

[pumpkinboy]

Disney financing is by far the easiest option, and the difference in the cost of the points (direct vs resale) will be more than offset by the cost of the financing in all likelihood. Doc's recommendation works for me as a cost-effective strategy: slap it on a home equity line (ours is 3.75%) if possible, sinc ethe timeshare financing options are usurious.

We actually ended up buying direct from DVC sales (using an old colleague as referral, netting them $200), and using the 10 yr direct debit loan (at 9.75%, still too high but...). Our reasoning was that we would get the maximum time period and minimum monthly payment in the near term, and once we upped our Home Equity line enough (or once that inheritance kicks in), shift it over to that, paying off the high 9.75% loan. Of course when we pay off the loan, we will be using our Disney Visa, so will earn 1% in Disney Reward $$, and (little known, but available) 6 months 0% rate on the DVC prepayment (you will need to look into this further with DVC and BankOne before doing this, but it has worked for us), then pay it all off with savings or Home Equity line at the end of the 6 month period.

Good luck.