Question about DVC financing, did Disney make a mistake?

[cruisereg]

... is the amount financed is not reported to credit bureaus if you stay current. That could make the difference between qualifying and not qualifying for a loan depending on your personal situation and debt to income ratio. I just pulled a credit report and it does not show up (Experian).

 

[tjkraz]

The protion of your dues that goes to FL property taxes may be tax deductible---and it should be no where near 25%. It depends quite a bit on your personal situation, how the taxes are billed, whether you itemize, etc. Only your tax professional can tell you for sure.

For the newer resorts it's pretty close.

BLT: Dues are $3.67 of which $.83 is taxes (23%)
VGC: Dues are $3.82 of which $.83 is taxes (22%)

 

[Caskbill]

For the newer resorts it's pretty close.

BLT: Dues are $3.67 of which $.83 is taxes (23%)
VGC: Dues are $3.82 of which $.83 is taxes (22%)

It's not too much different for OKW or SSR. For 2009:

OKW: Dues are $4.74 of which $.94 is for property taxes. (19.8%)
SSR: Dues are $4.34 of which $1.0307 is tax (23.7%)

 

[Brian Noble]

I stand (sit?) corrected. Thanks, guys.

 

[cheezNE1]

If anyone can take a minute to read this and let me know if I am understanding it correctly, I think Disney may have made a mistake with our financing.

We financed $14,860.00 with an 14.25% interest rate. So wouldn't it be $2,117.55 in interest making the total amount we pay to Disney $16,977.55?

Our payment is $232.96 for 120 months (yes, 10 years - something we never realized or would have agreed on) and if we pay $232.96 for 120 months it equals us paying $27,955.20. That's a huge difference.

Am I totally misunderstanding the way this works or is there a legitimate discrepancy?

Thank you for anyone who read this far

14.25%

 

[Dean]

I put the numbers in a loan calculator and got exactly $232.96. Of the first payment, only $56.50 goes to principle and $176.46 to interest. It's not until you pass 5 years paying that you pay more in principle than interest assuming you only pay the standard payments and on time. IF you pay extra, make sure you send them separately and mark them specifically to be paid on principle. If you don't some will simply count it like you're paying the last payments, payment 120, 119 and so on. This won't even give you the option in many cases of skipping payments if you get in a bind.