Paying off Loan or Refinancing

[LimoFam5]

Has anyone paid off their loan with DVC with another loan?
How do you go about applying for that type of loan? Is it considered a refinance? Is it a mortgage loan?
I am looking at options to try and pay DVC faster and get a lower interest rate......HELP!!

 

[Sandisw]

One option is a home equity loan or line of credit. Some have done this knowing they had the ability to pay it off in a short amount of time.

When we bought through Disney, we were originally going to do the loan and then worked things out so we could put the balance on our Disney Visa and got 6 months, 0% interest, enough time to get it paid off.

Not sure that would still be an option since you have already taken out the loan. The other piece is that you would need to be within a short time frame of paying it off.

I have also heard of others taking out personal loans but not sure how the rate would compare.

 

[jlewisinsyr]

Outside of Disney financing, most companies view timeshare financing no better than an unsecured loan. You're going to have a hard time finding financing better than one Disney offers on a preferred rate for a timeshare outside a credit card balance transfer (but factor in the transfer fees and time frame) or a home equity/line of credit (but than you have to factor the risk of securing a "luxury" debt to your primary residence).

 

[chalee94]

Is it a mortgage loan?
I am looking at options to try and pay DVC faster and get a lower interest rate......HELP!!

unless you finance directly through disney, it is NOT likely that the interest on your DVC loan would qualify as tax deductible.

it's hard to get a low interest rate on an asset class (timeshares) that tends to sell for pennies on the dollar on ebay. and it's not a good idea usually to use a home equity line and put your house at risk if you have trouble paying for your DVC contract...

 

[Dean]

Has anyone paid off their loan with DVC with another loan?
How do you go about applying for that type of loan? Is it considered a refinance? Is it a mortgage loan?
I am looking at options to try and pay DVC faster and get a lower interest rate......HELP!!

The only company I'm aware of to finance a timeshare outside DVC is higher rates than DVC. Other than home equity or second mortgages, there aren't many options. I wouldn't put a home at risk if things are tight anyway. Better to try to generate extra income to try to pay it down, even if one has to not vacation and rent out the points. Good luck with your choices.

 

[DisneyRegulars]

We looked at the Disney financing a while back, but we got a great rate, 4.75%, at our credit union on a personal loan. But everyone else is right, banks won't mortgage, so your optioms are introductory offers on credit cards, unsecured personal loans, or home equity loans.

 

[DVCconvert]

Dean wrote:

I wouldn't put a home at risk if things are tight anyway

I agree with this 100%

 

[LimoFam5]

things are not tight at all, I actually want to buy more points. It was just we financed through Disney and the interest rate is less then ideal sooooo I was just looking at a way to get a lower interest rate. Tons of money can always be saved with a lower better interest rate.

 

[DisneyRegulars]

things are not tight at all, I actually want to buy more points. It was just we financed through Disney and the interest rate is less then ideal sooooo I was just looking at a way to get a lower interest rate. Tons of money can always be saved with a lower better interest rate.

If you belong to a credit union, take a look at their unsecured personal loan rates. Most places are in the 8-9% range, but in some cases, much better deals can be found.

 

[missycj96]

As others have said, I would not turn a lien against my timeshare into a lien against my home.

 

[MyCathryn]

We are doing a home equity loan for ours, we have it for 5 years (the min) and plan to pay it off in 2 years. Its what works for us in our situation. Plus it is at 4%.

 

[disney_bob]

I know its not what you were asking for.. but if things "aren't tight" maybe considering paying off your existing loan instead of adding another. We only bought what we could pay for in cash.

 

[duckygirl]

I know its not what you were asking for.. but if things "aren't tight" maybe considering paying off your existing loan instead of adding another. We only bought what we could pay for in cash.

I agree. We did not buy dvc until we could pay in cash. We waited 4 years until we could.

 

[ctclocal]

I agree. We did not buy dvc until we could pay in cash. We waited 4 years until we could.

if prices go up every as the DVC sales rep said, wasn't it a lot more expensive to wait?

 

[chalee94]

if prices go up every as the DVC sales rep said, wasn't it a lot more expensive to wait?

resale prices get cheaper over time. it only gets more expensive if you are willing to pay a premium to get access to the overpriced trades for the disney collection or cruises. (edited to add: this restriction is also a relatively recent phenomenon - when i bought a resale contract, i got access to the trades...i just don't do it.)

paying 11%-15% to finance an asset that loses 30% or more of its value immediately after you sign the paperwork doesn't seem like much of a solution.

remember that if your situation changes in the next few years and you need to sell, you will be selling a resale contract whether you pay the premium to buy direct or pay less to buy a resale now.